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Gender Pay Report 2019 Foreword

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Gender Pay Report 2019 Foreword Gender Pay Report 2019 Foreword At AstraZeneca, we believe that an inclusive In the UK, our progress is recognised in Empowerment Summits, which feature a and diverse workforce is fundamental to the 2019 Hampton-Alexander Review of mix of speakers and leaders who challenge the successful delivery of life-changing the FTSE 100 companies, where, in the participants to think differently, speak up medicines to patients. This is because Executive Committee and Direct Reports and create an environment where every innovation requires breakthrough ideas that category, AstraZeneca is ranked sixth – member of our team can give their best. only come from people encouraged to be up one place on 2018. Further, when we In 2019 we expanded this series to six themselves at work, enabled to contribute look at the latest data in this report, it is Summits and used streaming technology to their full potential, and empowered to encouraging to see that the gender pay to make sessions available to all employees. challenge conventional thinking. gap at AstraZeneca continues to compare favourably with national averages. We will continue to take action to enhance Our ability to harness different thinking, our culture and drive the innovation that will ideas, experiences and perspectives has More generally, the progress we are making enable us to make an even bigger difference been central to the progress we have made as a company is supported by several to the lives of patients around the world. as a company in recent years, strengthening initiatives, including our Women as Leaders “ We are committed our open and collaborative culture, fuelling programme, which aims to advance the next to promoting and innovation, and resulting in the unprecedented generation of female leaders, activities to achievements that we delivered in 2019. encourage more women to seek careers in maintaining a culture science, technology, engineering and maths Pascal Soriot of respect and equal Gender diversity is one tremendously (STEM), as well as other efforts, such as Chief Executive Officer important element of our culture, and I am gender-neutral advertising of roles, diverse opportunity.” proud of the progress we continue to make. candidate slates and interview panels. Globally, compared with five years ago, we have increased the number of women hired In addition, as part of our broader into senior roles: women now make up just commitment to inclusion, we continue to over 45% of senior leaders today, compared hold regular events across the company with 40% in 2012, and we are aiming to to promote inclusion and diversity in the reach 50% by 2025. workplace. This includes a series of Our Global Inclusion & Diversity Strategy focuses on: 6th 45% > empowering leadership at all levels, FTSE100 ranking for Women of our senior leaders today > fostering a culture where people speak up with their different ideas representation in the top 3 are women, compared with and opinions; and layers: moved up from 7th 40% in 2012 > building a strong and diverse place 2018 to 6th place 2019 talent pipeline Hampton-Alexander Review. AstraZeneca Gender Pay Report 2019 2 Introduction In 2019, we employed 6,805 people in the engineering and maths (STEM). We continue As an organisation, we constantly challenge UK, and our gender balance was almost to support many initiatives that promote ourselves to achieve more, which is why our equal – 53% men vs 47% women. We women in STEM through our ambassador investment in this area is for the long term, remain committed to fair pay and we review work and have more than 60 STEM and why inclusion and diversity are high on pay across the workforce to ensure that this ambassadors partnering with primary our list of priorities. The continued delivery principle is applied in practice. This year, and secondary schools in the UK. and progress of this approach is pivotal in our gender pay gap, which continues to helping our company and our people deliver compare well with the UK average, was This year, we implemented an award-winning life-changing medicines. very similar to that published in 2018, this leadership toolkit that was produced by the is expected as we would anticipate progress UK Women’s Business Council, allowing us to be made in the mid to long term and not as an organisation within the STEM fields to on a year on year basis. build greater gender diversity and fill our talent pipeline through the use of metrics. Fiona Cicconi The gap continues to be driven by our Executive Vice-President, Human Resources “ We aim to attract, demographics and our timing of payments. We continue to invest in our talent strategy, retain and develop the We currently have more men than women which is about attracting, retaining and in senior roles in the UK, and more women developing the best people, whatever their best people, whatever than men who work part-time and take backgrounds. This is critical to us as an their background.” advantage of our flexible working policies. organisation as a truly diverse workforce is about every aspect of people’s As a significant employer in science and backgrounds, not only gender, but also manufacturing in the UK, we continue to ethnicity, religion, socio-economic status, believe we have an important role to play in sexual orientation and culture. This diversity encouraging women in science, technology, drives creativity and innovation and is pivotal in enabling us to deliver the next phase of our organisation’s vision. AstraZeneca gender balance Our talent strategy is delivering and having 15.7% UK employees – 6,805 a positive impact on our workforce. Women Hourly median pay gap continue to be promoted into senior and – on average men were leadership roles at a higher rate than men – paid 15.7% more than and this is based on performance. Later in women this report you can read stories from some of the women whose careers are thriving at AstraZeneca. 23.8% Median Bonus Gap 53% 47% – on average men were paid bonuses that were 23.8% more than women AstraZeneca Gender Pay Report 2019 3 Explaining gender pay Lowest hourly pay Highest hourly pay Median The median is calculated by lining up everyone of each gender in order of how much they are paid. The median is the amount paid to the person in the middle of each line. The median gap is the difference between these two numbers, expressed as a percentage. This calculation is done for pay and for bonuses. What is the difference between gender pay and equal pay? The difference equals the median hourly pay gap Equal pay is a man and a woman being paid the same for doing the same job, or a job of equal value. The requirement of equal pay for equal work has been enshrined in UK law for nearly 50 years. Lowest hourly pay Highest hourly pay Companies are required to disclose their gender pay gap by comparing average pay by gender to show the overall balance of pay between men and women. The difference in average pay between men and women – the gender pay gap – can be influenced by many Hourly rates of pay Mean factors, such as the number of women and The mean is the average hourly pay across each gender. men at different salary levels within the This is worked out by adding together all the hourly rates Number of pay for each gender and then dividing the total by the company, or the number of men and women of female Mean female total number of people of that gender. The mean gap is choosing to work part-time. employees average pay the difference between the two numbers, expressed as a £ £ £ percentage. We report both the mean pay gap and the Explaining mean and median mean bonus gap. pay calculations The difference equals the mean hourly pay gap The UK Regulations require us to report our median (mid-point distribution) and mean (average) pay and bonus gaps, Number along with the ratio of men to women in of male Mean male each pay quartile. £ £ £ employees average pay Hourly rates of pay AstraZeneca Gender Pay Report 2019 4 What is our Our hourly median pay gap, at 15.7%, UK gender pay gap? is below the UK average of 17.3% Why the gap? How do these numbers differ from The hourly median pay gap is driven largely last year? by two factors: Overall, the pay gap is similar to last year, our mean hourly pay gap has improved in 1. The higher proportion of men in senior 2019 due to increased representation of and executive roles women in the upper quartile of pay. Hourly pay gap AstraZeneca in the UK 2. The higher proportion of women choosing Moreover, the representation of women Median Mean part-time roles across the pay quartile groups has r emained Number of Employees fairly balanced, this represents, the general 15.7% 12.7% employees Seniority gap movement across the organisation. Median pay gap: Mean pay gap: Like many companies, the seniority gap Although a small increase has been seen men were paid men were paid 6,805 comes from more men taking up careers in in our median hourly pay and bonus gap 15.7% more 12.7% more science in previous generations. However, measures, AstraZeneca’s median hourly pay than women than women things are changing. We now have an almost gap (15.7%) continues to remain below the 50/50 split of men and women in scientific UK national average of 17.3%. and clinical roles, which were traditionally Bonus gap Male 53% male dominated. At present, we have more Our pay gap continues to be driven primarily Median Mean Female 47% women in junior roles, but we are actively by the higher proportion of nm ce ompared encouraging women to progress to senior to women across senior career levels, and it 23.8% 32.9% Ratio of men to women in each roles, which should reduce the pay gap in is recognised that hiring into manufacturing Median bonus Mean bonus gap: pay quartile due course and this year for the first time and digital roles during this year with a gap: men were men were paid we have over 50% of our AstraZeneca predominantly male candidate pool has paid 23.8% more 32.9% more Upper quartile employees being women.
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