GENDER & ETHNICITY PAY GAP REPORT 2021 - Warner Music ...
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GENDER &
ETHNICITY
PAY GAP
REPORT
2021Warner Music UK (WMUK) is committed to building a diverse, equitable and inclusive workplace where each of our employees feels seen, heard, valued, respected and has the opportunity to truly fulfil their potential. This year, we are publishing both our Gender Pay Gap and our Ethnicity Pay Gap figures to provide greater transparency. We hope and expect that it will become mandatory by law for larger companies to publish their Ethnicity Pay Gap in the future, but we do not want to wait for legislation before we act. With respect to our Gender Pay Gap Report, as well as sharing the numbers for 5th April 2020, as legally required, we’re also choosing to publish the results for April 2021. This will allow us to talk about our progress in real-time. It will also let us talk about what we’re doing, and not just what we’ve done. To give further context to the journey we’re on, we’ve also shown the trend from April 2017. Since this is the first year publishing our Ethnicity Pay Gap numbers, the 2021 numbers in this report will act as the starting point for tracking our progress and help hold us accountable. We recognise that our Gender and Ethnicity Pay Gap numbers point to the fact that there is still much more to be done, particularly at the most senior level. Addressing this imbalance continues to be a focus for us. In August 2020, to help accelerate our progress, Warner Music Group (WMG) hired its first Global Head of Diversity, Equity and Inclusion (DEI), Dr Maurice Stinnett, who has been building a dedicated team of experts around him. With his support, in November 2020, we shared our first WMUK Diversity, Equity & Inclusion Report with our team. This internal document outlines our five-year DEI targets and the 31 tangible actions we’re committed to taking within the first 12 months following publication. These actions encompass areas such as training, development, recruitment, Employee Resource Groups, flexible working, and parental leave. We also recognise that the pandemic has had significant impact on gender equality, specifically for those struggling to balance work and parenting/caregiving responsibilities. To help counter this, we introduced a package of support for parents and caregivers that includes financial support, additional leave, and enhanced flexibility. We’re also committed to empowering our employees to raise their concerns and share their ideas directly with senior leadership. We’re pleased that our Employee Resource Groups are leveraging this opportunity. We believe the conversations we’re having and the steps we’re taking will lead to lasting and meaningful change across our business, making us more reflective of the diverse community of the artists that we represent and the world in which we live. Tony Harlow CEO Warner Music UK Erica Bone VP, People Warner Music Group Dr Maurice Stinnett Global Head of Diversity, Equity & Inclusion Warner Music Group
GENDER PAY GAP 2021
OVERVIEW In 2017, when we first started reporting our Gender Pay Gap, we had a mean salary gap of 49.4%. Between 2018 and 2020, we made consistent strides in closing this gap, most recently to 30.0% in 2020. However, in 2021 the mean salary gap increased to 36.7%. We have always known that our progress may not be linear and, when we delve into why, we can see that while women make up 50% of the overall WMUK population and we’re seeing an increase in the proportion of female hires in the lower quartiles, they continue to be underrepresented in the upper quartiles. While we have welcomed several women to senior leadership positions over the last two years, we have also seen several men be promoted or join the business at a senior level, including in newly created roles. While this has increased the diversity of our business in some ways, it has negatively impacted our Gender Pay Gap in the short term. However, through our continued partnership with the Women of Warner Employee Resource Group, which consists of over 200 people, we’ll continue to identify and invest in learning and development opportunities for female talent at WMUK. Our most recent figures underscore why we must continue to focus on making WMUK an environment in which all our employees, including those in underrepresented groups, can thrive, grow, and progress. To hold ourselves to that goal and make sure we stay results-focused, as part of our DEI Report, we set ourselves two ‘stretch targets’ concerning gender representation. First, by the end of 2025, we would aim to increase female representation in the combined Senior and Executive positions from 33%* to 50%. Second, we would maintain a 50:50 split between women and men across the total WMUK population. It should be noted that the gender calculations in this report are based on the UK government’s criteria, which is simply whether individuals identify as men or women. We’re aware that not all our employees would categorise themselves in this binary way. We continue to work at capturing a full picture of our workplace better. *Stretch target numbers correspond to 2020 data from when our DEI Report was published.
SALARIES
Our Gender Pay Gap Report figures show the trend from April 2017 – April 2021. Full results from
previous years continue to be available on the UK government’s website.
In headline terms, while we saw an improvement in both the mean and median Gender Pay Gaps
every year from 2017 to 2020, in the 2021 figures, we’ve seen an increase in both.
From 2017 to 2020, our mean Gender Pay Gap reduced from 49.4% to 30% in 2020. However, in
2021, we saw it increase to 36.7%. The same is true of our median Gender Pay Gap, which was
reduced from 21.3% in 2017 to 14.5%, with an increase to 17.8% in 2021.
Mean & Median Salary Gender Pay Gap by Year, 2017-2021
45
49.4%
40
35
38.7%
30
36.7%
25
31.5%
30.0%
20
23.1%
15 21.3%
18.2% 17.8%
10
14.5%
5
0
2017 2018 2019 2020 2021
MEAN MEDIAN
*MEAN VS MEDIAN
The mean is calculated when you add up the wages of all employees and divide the figure by the number of
employees. The mean Gender Pay Gap is the difference between mean male pay and mean female pay. It’s a
better calculation for understanding the impact of outliers – such as a few, highly paid people – on the overall
Gender Pay Gap.
The median is the figure that falls in the middle of a range when everyone’s wages are lined up from
smallest to largest. The median Gender Pay Gap is the difference between the employee in the middle
of the range of male wages and the middle employee in the range of female wages. It’s a useful
calculation for eliminating the impact of outliers on the average figure.BONUSES
All permanent employees are eligible for a bonus payment in January, provided they started with the
company before 1st July of the previous year.
In 2020, we saw our mean bonus pay gap decrease by a further 12.4 percentage points (a reduction
of 23.2 percentage points over the last four years). However, it increased from 56.9% in 2020 to
65.6% in 2021. The widening of the gap reflects the weighting of men in more senior roles and the
fact that several female employees started after the 2021 cut-off date, making them ineligible for a
bonus that year.
In 2020 there was a minimal increase in the median bonus pay gap (2.6 percentage points).
However, this dropped by 17.3 percentage points to 20.6% in 2021.
Mean & Median Bonus Gender Pay Gap by Year, 2017-2021
90
80
70 80.1%
60
69.3%
67.5% 65.6%
50
56.9%
40
30 43.8%
39.1% 37.9%
35.3%
20
10 20.6%
0
2017 2018 2019 2020 2021
MEAN MEDIAN
% Receiving a Bonus
90
80 91%
85% 87% 87% 86%
70 82% 80%
74% 75% 76%
60
50
40
30
20
10
0
2017 2018 2019 2020 2021
MALE FEMALEGENDER DISTRIBUTION
BY QUARTILE
In 2019 we began to see a developing trend in the prevalence of female talent emerging in the
lower quartiles, showing that our recruitment and retention initiatives are starting to have an impact.
However, it’s clear that men still dominate the upper quartile of the company, which remains the
major driver of our Gender Gay Gap.
To address this, we are taking several steps, including introducing a Reciprocal Mentoring Pilot
Programme in May 2021. The programme provides a structured opportunity for relationship
building, knowledge sharing, and collaboration between senior leaders and people from groups
that are underrepresented at a senior level of the business.
April 2017 Gender Pay Gap - Quartiles April 2018 Gender Pay Gap - Quartiles
Upper Quartile 74% 26% Upper Quartile 70% 30%
Upper Middle Quartile 56% 44% Upper Middle Quartile 60% 40%
Lower Middle Quartile 59% 41% Lower Middle Quartile 48% 52%
Lower Quartile 47% 53% Lower Quartile 47% 53%
April 2019 Gender Pay Gap - Quartiles April 2020 Gender Pay Gap - Quartiles
Upper Quartile 66% 34% Upper Quartile 61% 39%
Upper Middle Quartile 51% 49% Upper Middle Quartile 50% 50%
Lower Middle Quartile 45% 55% Lower Middle Quartile 40% 60%
Lower Quartile 48% 52% Lower Quartile 49% 51%
April 2021 Gender Pay Gap - Quartiles
Upper Quartile 66% 34%
Upper Middle Quartile 45% 55%
Lower Middle Quartile 46% 54%
Lower Quartile 43% 57%
MALE FEMALEWHAT WE’RE DOING TO CLOSE THE GAP
We’re committed to creating an environment where all our female employees can thrive, and
this takes action, not just words. As part of our internal WMUK DEI Report, we outlined several
commitments we believe will accelerate meaningful change and shared our 2025 gender
representation stretch targets (see page 4).
Since November 2020, we’ve been focusing on:
1
DEVELOPING OUR TALENT
Our People Team and Global DEI Team have collaborated to develop a reciprocal
mentorship programme focused on groups underrepresented in leadership. The UK pilot
programme launched in June 2021 and saw employees from underrepresented groups
with two years or less service, paired with senior mentors. The programme is designed
to support these underrepresented groups in advancing and progressing in their careers and
increasing their representation in Warner Music UK’s leadership roles, and we’re now looking at how
we can scale it across the organisation.
2
PARTNERING WITH OUR WOMEN OF WARNER EMPLOYEE RESOURCE GROUP
Robust ERGs are critical to the engagement, inclusion, and retention of women at
Warner Music, and we’ve worked closely with our UK Women of Warner ERG to explore
development opportunities and support programming. In addition to making external
coaches available to help groups meet their objectives, we’ve supported several events and
workshops exploring the issues faced by women in the workplace, including women’s safety
at work and allyship. We also helped facilitate a panel discussion around International Women’s Day
hosted by Dotty, Apple Music’s Lead Cultural Curator in Black Music.
3
POLICIES AND PROCEDURES
While not every person has parenting or caregiving responsibilities, research shows us
that women face steeper caregiving penalties in the workplace than men, which has only
increased during COVID. Therefore, it is vital that our policies support gender equity in the
workplace. In response to the challenge brought by COVID, we introduced the WMUK Work,
Family and Household Support Guide, which provided those with caregiving demands,
including working parents, with additional caregiving leave, one-off financial support, and access to
bespoke resources, including coaching and curated digital learning content. In tandem, we offered
coaching to leaders to help them better manage their teams’ individual needs.
Our People Team is also evolving the recruitment, hiring, and onboarding policies, proposing new
strategies for how we can best achieve gender equity in representation across levels at Warner
Music UK.
4
TRAINING & EDUCATION
Since November 2021, we have introduced more than 30 new learning resources from Lean
In, a non-profit organisation dedicated to helping women achieve their ambitions, to our
digital learning platform. We have also introduced People Leadership Essentials training, a
mandatory training programme for all managers, which covers topics such as psychological
safety and addressing Unconscious Bias, helping to create a more inclusive leadership
environment. In collaboration with our ERGs, we’re continuing to evolve the People Leadership
Essentials format and content based on feedback and best practice.ETHNICITY PAY GAP 2021
OVERVIEW Unlike our Gender Pay Gap, there is currently no legal requirement for businesses in the UK to report their Ethnicity Pay Gap. However, in the interests of transparency, we have chosen to calculate and disclose our figures, using the methodology outlined by the government for the Gender Pay Gap as a framework. To avoid identifying any individual employees, we’ve had to group Black, Asian and Ethnic Minority employees in one group. We recognise that this approach is limited in reflecting the lived experience of all our employees and will continue to strive to get a richer and more accurate picture of everyone at WMUK over time. This demographic snapshot reveals that ethnic representation across our company declines with seniority, from 30% in junior roles to 21% at the highest level of WMUK. Our data also has some limitations, with only 90.2% of all respondents choosing to disclose their ethnicity, meaning 9.8% of employees did not declare their ethnicity. Still, we are confident the calculation provided offers an accurate baseline understanding of where we currently are as a company. A NOTE ON LANGUAGE & TERMINOLOGY The DEI space is dynamic and developing and we’re mindful that language and terminology around this subject regularly evolves. In this Report we’ve included terms and definitions that are widely used in the UK today. In the Report, we’ve had to break the numbers down between White and Black, Asian & Ethnic Minority, because if we go more granular than this, there’s a risk that individuals could be identified. Over time, we hope this will change, and we’ll be able to break it down in a way that is more reflective of our community.
SALARIES
As with the Gender Pay Gap, we believe that these figures reflect the underrepresentation of
Black, Asian and Ethnic Minority people at the most senior levels of the business and mean that
addressing this must be a priority. As such, as part of our DEI Report, we have included two specific
stretch targets to address this imbalance by 2025. First, we will aim to increase representation
of Black, Asian and Ethnic Minority employees in the combined Senior and Executive positions
from 12%* to 21%. Second, we aim to increase representation across the company of employees
identifying as Black, Asian or Ethnic Minority from 22%* to 33%.
*Stretch target numbers correspond to 2020 data from when our DEI Report was published.
Mean & Median Salary Ethnicity Pay Gap, 2021
15
10 13.4% 14.3%
5
0
MEAN MEDIAN
In June 2021, our mean salary pay gap is 13.4%, and our median salary pay gap is 14.3%.
Since our analysis of the Ethnicity Pay Gap is in its first year, we cannot yet see trends, however
these numbers will form the starting point for tracking our progress over the coming years.BONUSES
In 2021, 86% of White employees received a bonus, compared to 81% of Black, Asian and Ethnic
Minority employees. This number reflects those eligible to receive a bonus before the 1st July
cut-off date. Our mean and median ethnicity pay gaps in bonus payments for 2021 are 35.3% and
34.7% respectively.
Mean & Median Bonus Ethnicity Pay Gap, 2021 June 2021 - % Receiving A Bonus
90
35
80
30 35.3%
34.7% 70 85%
81%
25 60
20 50
40
15
30
10
20
5 10
0 0
MEAN MEDIAN WHITE BLACK, ASIAN AND ETHNIC MINORITY
Our mean and median ethnicity pay gaps 85% of White employees received a bonus,
in bonus payments for 2021 are 35.3% and compared to 81% of Black, Asian and Ethnic
34.7% respectively. The gap is driven by the Minority employees. This number reflects
lower proportion of Black, Asian and Ethnic those eligible to receive a bonus before the
Minority people in the upper quartile of the 1st July cut-off date.
company.ETHNICITY DISTRIBUTION BY QUARTILE
When we look at the quartiles, we see that the lowest representation of employees identifying as
Black, Asian and Ethnic Minority is in the upper quartile at just 21% and, while the corresponding
figure is better in the upper middle quartile, lower middle quartile and lower quartile, at 25%, 34%
and 30% respectively, in all quartiles it falls below the London population of 40%. The recruitment,
training, and development strategies outlined in our DEI Report are intended to help improve these
figures.
June 2021 – Ethnicity Pay Gap Quartiles
Upper Quartile 79% 21%
Upper Middle Quartile 75% 25%
Lower Middle Quartile 66% 34%
Lower Quartile 70% 30%
WHITE BLACK, ASIAN AND ETHNIC MINORITYWHAT WE’RE DOING TO CLOSE THE GAP
In 2018, we embarked on a landmark project called ‘Lived Experience’. Partnering with independent
external consultants, we ran confidential discussion groups with our people to find out what life at
WMUK is really like, what the challenges are and what needs to change. The insights that emerged
from ‘Lived Experience’, combined with our People Data and invaluable input from our six ERGs, led
to the publication of our WMUK DEI Report and the 31 actions we committed to undertaking in year
one.
As part of the Report, as well as outlining our 2025 ethnicity stretch targets (see page 11), we
included several actions aimed at moving this agenda forward. These included:
1
DEVELOPING OUR TALENT
In June 2021, as previously mentioned, we launched a pilot reciprocal mentorship program
for people from underrepresented groups, including ethnic minorities. In addition, we
worked closely with The Link, our ERG focused on championing equality and challenging
discrimination, to introduce a bespoke mentoring programme specifically for its members.
Alongside this we continue to review and refresh our attraction, recruitment, hiring and onboarding
strategies with the aim of greater representation of Black, Asian and Ethnic Minority employees
across all levels at Warner Music.
2
TRANSPARENCY
Publishing our Ethnicity Pay Gap data was an important step in our journey, and we hope
doing so will encourage others in the industry to do the same. In addition, last year, we
set up the WMUK DEI Council with the goal of helping drive accountability, visibility and
engagement with our DEI agenda. The WMUK DEI Council includes representation from
all ERGs, the WMUK Senior Management Team, and key stakeholders from across the
business. Together, the WMUK DEI Council members help monitor the progress we’re making
against the commitments laid out in our DEI Report and report quarterly on the results. Alongside
this, Chairs of our ERGs regularly join the WMUK Senior Leadership Team meeting to make sure
that their thoughts are heard and actioned. We’re also pleased to have Austin Daboh represent
WMUK on the Board of the Warner Music Group / Blavatnik Family Foundation Social Justice Fund
and were delighted to see that the first significant donation made outside the US was to the UK’s
Black Cultural Archives.
3
TRAINING & EDUCATION
In partnership with our ERGs, we have built a curriculum of learning and educational
events linked to their networking calendar, both at UK and global levels. As part of this, we
have curated and shared digital learning resources, offered support with networking and
facilitation and curated a Racial Equity Glossary that is housed on a new, global DEI Hub.
Events have included:
• An internal screening and discussion around episodes from Sir Steve McQueen’s Small Axe
anthology in honour of the anniversary of George Floyd
• A talk and panel discussion with Kanya King, Founder & CEO of the MOBO Organisation, and artist
manager and music industry executive Paulette Long, in recognition of Stephen Lawrence Day
• Access to Atlantic Record US’ Off-Color and Black Coalition ERGs Race X Music series, which has
included panels such as The Art of Activism with Dr Angela Y. Davis and The Art of Antiracism with
Ibram X. Kendi and Danyel SmithThese events help promote inclusivity at Warner Music UK by increasing awareness, creating
community, and sparking growth and reflection that lead to action. These discussions are further
encouraged within WMUK departmental meetings, creating further opportunities for real change in the
lives of historically underserved and marginalised people.
4
WELLBEING SUPPORT
Our Benefits Team has also launched several wellbeing resources to support the self-care
of our employees if personal, work, or societal issues are impacting their wellness. This
includes targeted resources to support our Black, Asian and Ethnic Minority employees,
who may, for example, feel more comfortable partnering with bespoke Wellbeing Coaches
from a similar background and lived experience.You can also read
