Closing the gap Our report

March 2018 2 Closing the gap: Our gender pay gap report

Foreword

Chris Ireland Neil Murray Virginia Rothwell UK CEO CEO UK HR Director EMEA Corporate Solutions

Our common shorthand is to talk about JLL as a ‘property In collating the data for this report, we’ve identified a clear company’. But, of course, our organisation is made up of people, gap between the average earnings of men and women in our not properties. Without the talent, motivation and energy of our organisation, and the reason is clear and unambiguous: employees, we wouldn’t have the successful business we’re so men hold four-fifths of the most senior roles in our organisation. proud of. Our mean gender pay gap is currently 36.7%. But we’re working At JLL, ensuring that everyone in our business is paid fairly is on it. We believe the best way to address the gap is by having fundamental to the way we go about things. It’s part of our more women in our senior roles and we’re pleased to report strategy to create an inclusive environment to attract and that over the last two years, the number of women in JLL’s top retain the best people regardless of gender, age, ethnicity or positions has increased by around one-third. Over the same background. But gender pay gap reporting helps to highlight period, our mean and median gender pay gaps have fallen. something else: the imbalance between the numbers of men and women employed at different levels of an organisation. This is great progress but we won’t rest until our business We are pleased that the UK Government is making businesses reflects the society in which we operate. You can read about publish this information. It will help shine a light on any gender the work we’re doing to make this happen in this report. imbalance in our industry and across UK plc as a whole. Helping people achieve their ambitions is at the centre of Frankly, women have always been under-represented at the everything we do – and that includes supporting our employees senior levels of the property sector. Indeed, it’s only four years to fulfil their potential. since our own UK Board was exclusively male. Thankfully things We welcome the requirement for companies to report on their have already changed a great deal. We believe that gender pay gender pay gap because it fits with our global ambition to gap reporting will help accelerate these changes. succeed through inclusion. We’re especially looking forward The good news is that JLL’s gender pay gap is narrowing. to sharing our progress with you in years to come as we We are well into our journey, although there’s still work to be continue to make strides throughout the business. done. Gender pay gap reports provide a valuable benchmark We confirm the data reported here is accurate. which will help us create a more balanced industry for tomorrow. It’s good for society, and it’s good for everyone with a stake in our business too.

Chris Ireland Neil Murray Virginia Rothwell Closing the gap: Our gender pay gap report 3

Gender pay gap: JLL UK the data Mean and median pay and bonus gap Gender Pay Gap Pay & Bonus Bonus Only

Gender pay gap vs. equal pay gap Mean 36.7% 78.9% A gender pay gap is not the same thing as an equal pay gap. Median 6.6% 62.5% The gender pay gap is defined as the difference in the average pay between men and women, regardless of the role they do. Quartile analysis It usually results from there being more men than women in senior roles or vice versa. Quartile Band This is not the same as an equal pay gap which is caused by Men Women a failure to pay men and women the same for comparable work. A 74.7% 25.3% Equal pay has been enshrined in UK law since the 1970s and is something we at JLL are committed to guaranteeing throughout the organisation. At JLL, our HR business partners work with our B 63.3% 36.7% directors to monitor and challenge where appropriate any pay decisions that are being made. Our Remuneration Committee C 70.6% 29.4% reviews all decisions around pay increases and bonuses to ensure we pay for performance with equality and fairness. D 56.8% 43.2% Median vs mean averages Percentage of all male and female employees The gender pay gap regulations require us to report average pay who received a bonus gaps in two ways: the median and the mean. The mean gives a more representative picture of our business, and is more useful in helping us shape what we need to do to close the gap, so whilst we include the median figures in our publication we have focussed on the mean in our supporting commentary. 51.6% 39.7% Our median gender pay gap is 6.6% and is calculated by taking the middle number when men and women are sorted from high to low and finding the difference. Whilst we are encouraged by our median number being much smaller and not skewed by a small number in high paying roles, it is the mean number that % of all women % of all men helps us identify that we have too few women in senior roles attracting the higher levels of pay and bonus. At JLL we employ 5,274 men, of which 2,094 received a bonus. The figures Out of the 2,828 women employed, 1459 received a bonus.

Our mean gender pay gap is 36.7%. This figure is the result of *Please note that this data represents the combined figures of all men outnumbering women at the top of our organisation by our entities in the UK. The information is based on data for the year a ratio of four to one. The impact of this can be easily seen to 5 April 2017. by removing the 100 top earners in the organisation from the Understanding the gap figures – the mean gender pay gap falls to 20%. You can sum up the reasons for the size of the gender pay gap in our industry in one word: history. In our middle management grades, the figure is 8%, thanks to Although we have long been committed to equal pay, the strong pipeline of women coming up through the ranks the property industry has been very male dominated across JLL. Nevertheless, we clearly have a long way to go for many years. before we are the gender-balanced organisation we want to be – and we’re working on it. Things have changed significantly, but even today four- fifths of our most senior roles are occupied by men. The fact that the reward structure for these jobs Mean and median pay and bonus gap: Our ‘pay’ figures are based on fixed typically includes significant bonus incentives widens salaries plus bonuses. the gap even further. Quartile analysis: The quartiles are determined by listing everyone by hourly rate, high to low, and dividing the list as close to equally as possible by 4. This shows the representation of women in each of the quartiles. This approach Over the next few pages we’ll look at what we’ve is adopted by all reporting companies in accordance with the guidelines and already achieved, and the work we’re doing to therefore gives a consistent view of where women sit in organisations. improve things further. 4 Closing the gap: Our gender pay gap report

How we’re narrowing our gender pay gap

Data is most useful when it lets you see what’s happening over time. So, we went back over previous years to help create a picture of our progress. The results are encouraging – our gender pay gap went down from 58% to 50% between 2014 and 2017.*

*In order to compare like for like, these figures exclude data from LaSalle and Integral.

Some of the initiatives which have helped us narrow the gap are shown on the timeline below, together with some of our key diversity and inclusion milestones.

2014 2015 2016 2017 2018 Nominations of female First analysis of gender 30% of graduate recruits Diversity strategy Remuneration participants for strategic pay gap and continued are BAME. (Black Asian launched committee created training up by 64% year equal pay review Minority Ethnic) on year Unconscious bias Steady increase in Success rate of women training rolled out Shared Unconscious bias First female board going for promotion to those involved uptake from 1 employee training rolling out to all member reaches 93% (up from in recruitment and to 3 to 6 over the last directors 66% five years ago) promotions three years 20% increase in the New initiatives to support Diversity networks rate of people returning Graduate recruitment Second female board women going on launched, including to work after maternity approach overhauled member and returning from Women’s Network leave in the last maternity leave three years Repositioned our JLL UK publishes Maternity Policy to Family Diversity & Inclusion data New Director for Diversity JLL Executive undertakes Matters, reflecting what for the first time, and & Inclusion role created unconscious bias training our people said commits to public and appointed they needed 2020 targets Closing the gap: Our gender pay gap report 5

Our wider diversity and inclusion strategy

Narrowing the gender pay gap is one element of our commitment to making sure that equality and inclusivity are a core part of our culture. Recent successes include:

• JLL shortlisted for Target Jobs Best Diversity Strategy Award 2018

• Katie Kopec, International Director, Strategic Development Consulting .and Amy Aznar, Head of UK Debt and Special Situations at LaSalle Investment Management, featured in Bisnow’s 51 Most Influential Women in Property 2018

• JLL is a signatory to the Real Estate Balance CEO Commitments for Diversity scheme

• Dave Carlos, Co-Chair of Building Pride, wins British Property Federation Award for Inclusivity, 2017

• JLL achieves top property company in Stonewall Workplace Equality Index 2017 (and 2018)

• Kelly Canterford, Co-Chair of Building Pride, named one of the UK’s top ten LGBT Inspiring Leaders 2018

• JLL is the first company to achieve dual accreditation with the Living Wage Foundation for Living Wage Employer Mark and Recognised Service Provider status, 2017. 6 Closing the gap: Our gender pay gap report

Building change within JLL

We’ve made it a conscious priority to achieve a better gender • We’re working to provide even better support to women balance at every grade within our business while remaining true returning to work from maternity leave which includes to our principles of making sure we have the right talent in the coaching to help with the transition as well as a successful right roles with the right values. flexible working policy across all our teams

• For the past three years our staffing levels have been • We’ve successfully enabled flexible working in client broadly balanced with an equal ratio of men and women facing, transactional roles allowing the effective balance of being a successful city agent and a working parent. • In 2017 48% of new staff recruited were women

• At entry level, we continue to attract and select a balanced Success through inclusion is embedded in our business mix of women and men. Over time, this will feed through globally. We were recognised among the Working the business to improve the gender balance at all levels 100 Best Companies in 2017 and named one of the National Association for Female Executives Top Companies for • We recently introduced gender-balanced shortlists to Executive Women in 2018, 2017 and 2016. ensure we start from a balanced pool of candidates

• 59% of people on our mentoring scheme are now female

• Looking at our 2017/18 graduate applications, women Building change in the industry outperformed men. 48% of successful canditates were female, despite only one third of women accounting for JLL has also been at the forefront of efforts to make the all applications. property industry more inclusive. We are one of the five founding members of Changing the Face of Property. Set up in 2012, this body seeks to improve diversity Success through inclusion in the industry by focusing on disability, ethnicity, sexual orientation, socio-economic background and gender. The culture of the property industry has traditionally been one of long and unsociable working hours. This made it unattractive We are also keen to learn from best practice outside our own or impractical for people with caring responsibilities and industry, and to share our own learnings openly. Our diversity commitments. Things have improved in recent years, but not and inclusivity memberships include Real Estate Balance, fast enough for our liking. So, we set out to build a family- the Business Disability Forum and Stonewall, alongside friendly environment which would allow people to achieve a engagement with both the Social Mobility Foundation and the healthy work/life balance. We call this Success Through Inclusion. Living Wage Foundation in 2017, when we were dual accredited as a Living Wage Employer. • We’re now creating a more flexible working culture across JLL, empowering employees to work in a more agile way. It’s not about the number of hours they spend at their desk in the office. It’s about the results they achieve Developing gender balance through our talent pipeline • We’re also ensuring we offer a diverse range of client entertaining events that appeal to a broader audience Between 2015 and 2018 the proportion of women recruited through our graduate programme went up from 44% to 48% • Since legislation around shared parental leave was and the number of women being put forward for promotion has introduced in 2015, we have seen a steady increase in the increased from 31% to 37% over the last 3 years. The make-up number of men taking this option of our pipeline below senior management is encouraging with a good balance of men and women, in some cases more women • We share gender data about each part of the organisation than men. Looking at our wider EMEA region, 41% of employees with our directors and help them to address any imbalances in our succession plan for the most senior roles are female. Closing the gap: Our gender pay gap report 7

Our people: their say

Emma Eaglestone Richard Howling Lead Director – Southampton, JLL Chief Operating Officer, JLL

“In 1996 the working environment was very different: “JLL’s shared parental leave scheme enabled me to I was the only in the Southampton office in a take time following the birth of my daughter, and be non-clerical role. 22 years and one merger later I am more of a part of her early months than I would have the lead director and today 50% of team leaders are been with standard paternity leave. JLL supports women – and because they are the right people for working parents and – with a flexible approach on both the job. JLL has committed to changing the workplace sides – balancing career and parenting can be dynamic with policies and programmes to attract and a reality.” retain talent at every level.”

Alex Finch Sophie Walker Director – Residential Development, JLL Head of Sustainability and Lead Director, Building a Better Tomorrow, JLL “During my 14 years in the industry, I have seen a welcome shift in attitude. The senior leadership “My generation assumes we will be working into our here at JLL are promoting and embracing a sense of seventies, so that affects how I think about work/life change and recognising the key role diversity plays in balance. I’ve had a sabbatical, am about to take my delivering a successful business. second maternity leave, and when I returned from work after my first child, I used a phased return and have continued to work from home regularly. None of this “As a company, we need to ensure we keep nurturing has affected my progression to the UK Executive, and retaining talent to secure the right pipeline of future and I’ve felt strongly supported along the way.” leaders as we continue to bridge the gender gap.”

Helen Gough Christopher Walters Lead Director Project & Development Services, JLL Director – Strategic Development Consulting, JLL

“I have been supported in my ambitions over the last “As a new it was important to me knowing that 16 years – joining initially as an Associate Director and JLL would support me in my new challenge as now leading a business of over 160 people, being a parent through flexible working and shared parental a member of the UK Exec and PDS Global Board. leave. Senior leaders and colleagues recognise the This support has also been outside of work, with importance of flexibility. Being able to work from home a sabbatical to compete in the Clipper Round the more has definitely helped me build a bond with my World Yacht Race. Working at JLL has challenged me, new daughter while supporting my wife.” developed my skills and broadened my horizons.” 8 Closing the gap: Our gender pay gap report

Gender pay gap data by entity

About JLL We are a professional services and investment management business specialising in real estate. We’re a global company with teams of experts based around the world. We offer a wide range of services to help our clients build value from property. In the UK we have five major trading entities: • Jones Lang LaSalle Limited: investor and occupier services including staff from Tetris, our fit-out business • Jones Lang LaSalle Resources: resource management services • Jones Lang LaSalle Services: facilities management • Integral: maintenance services • LaSalle Investment Management.

To make the picture as clear and simple as possible, we have aggregated the figures for each entity into one top-line set. The information here is based on data for the year to 5 April 2017. Having critically reviewed all aspects of our processes associated with our gap at the beginning of 2020, we now understand we based our 2018 and 2019 calculations on a different interpretation of the legislation. In light of this we have recalculated our gender pay gap numbers, please refer to our 2020 report for these.

JLL Ltd JLL Resources

Mean and median pay and bonus gap Mean and median pay and bonus gap

Gender Pay Gap Pay & Bonus Bonus Only Gender Pay Gap Pay & Bonus Bonus Only

Mean 57.8% 84.4% Mean 22.6% 31.4% Median 43.9% 78.5% Median 18.6% 27.3%

Percentage of all Percentage of all male and female male and female employees who employees who received a bonus received a bonus 80.8% 72% 73.4% 65.5%

% of all women % of all men % of all women % of all men Quartile analysis Quartile analysis

Quartile Quartile Band Men Women Band Men Women A 81.6% 18.4% A 73.6% 26.4%

B 63.1% 36.9% B 66.4% 33.6%

C 38.9% 61.1% C 50.0% 50.0%

D 39.4% 60.6% D 29.0% 71.0% Closing the gap: Our gender pay gap report 9

LaSalle Investment Management

Mean and median pay and bonus gap Quartile analysis

Gender Pay Gap Pay & Bonus Bonus Only Quartile Band Men Women Mean 38.3% 51.9% A 78.6% 21.4% Median 36.0% 46.7%

Percentage of all B 61.0% 39.0% male and female employees who C 65.0% 35.0% received a bonus 94.4% 96% D 36.6% 63.4%

% of all women % of all men

JLL Services Integral

Mean and median pay and bonus gap Mean and median pay and bonus gap

Gender Pay Gap Pay & Bonus Bonus Only Gender Pay Gap Pay & Bonus Bonus Only

Mean 16.4% 41.1% Mean 28.0% 57.1% Median 10.4% -13.4% Median 28.8% 86.4%

Percentage of all Percentage of all male and female male and female employees who employees who received a bonus received a bonus 82.6% 70% 5.1% 2.6%

% of all women % of all men % of all women % of all men

Quartile analysis Quartile analysis

Quartile Quartile Band Men Women Band Men Women A 72.8% 27.2% A 93.3% 6.7%

B 69.8% 30.2% B 93.8% 6.2%

C 72.7% 27.3% C 86.5% 13.5%

D 59.1% 40.9% D 53.3% 46.7% Contacts

Chris Ireland Lydia Corneck UK CEO Head of Talent Acquisition [email protected] & Development [email protected]

Neil Murray Cathrine Harrison CEO Director - UK Corporate Marketing EMEA Corporate Solutions [email protected] [email protected]

Virginia Rothwell UK HR Director [email protected]

jll.co.uk © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to JLL and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of JLL and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of JLL. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.