“Our overall pay and bonus gaps are driven by lower representation of Black, Asian and minority ethnic colleagues at senior grades,” according to the report. On average, those employees — who account for 10.3% of staff and occupy 7.3% of senior management roles — are not paid less than White employees at any individual level, Lloyds said.
Black employees make up 1.5% of Lloyds staff and occupy 0.6% of senior management positions — equating to just 40 people out of a senior management team of roughly 7,000.
“That’s not good enough; and it’s why we have resolved to take action,” CEO António Horta-Osório said in a statement, adding that Lloyds is an “anti-racist organisation.”
Unlike gender pay gap reports, which are mandatory in the United Kingdom for companies with more than 250 workers, ethnicity pay gaps are published on a voluntary basis.
The stark differences in pay and seniority between Black and White employees reflected in the Lloyds report highlights a much wider problem in Britain, where Black people are woefully underrepresented in senior leadership positions.
Lloyds published a Race Action Plan in July to address the specific challenges faced by Black employees and set a goal to increase Black representation in senior roles to at least 3% by 2025, in line with the overall UK labor market.
It became the first big UK-listed company to set a public target to increase the representation of Black, Asian and other groups who do not identify as White in senior management in 2018, aiming for 8% by the end of 2020. Lloyds said Friday that this will play a key role in helping it close its ethnicity pay gap over time.
Claudine Reid, a former adviser to the UK government on social enterprise, will chair the committee, which will also comprise other Black founders and business owners. The committee will investigate the barriers to growth for Black entrepreneurs.