Lloyds Says Black Employees Are Paid 20% Less Than Peers
(Bloomberg) -- Lloyds Banking Group Plc’s Black employees are paid about 20% less than their colleagues as British lenders struggle with their representation across senior positions.
The median pay gap between Black employees and other peers was 19.7%, while the bonus gap was 37.6%, according to the bank’s April 2019-2020 report.
“For our Black colleagues, the pay and bonus gap is at its widest as these colleagues are disproportionately under-represented at senior levels,” the U.K. bank said in the report, which was released as part of a wider diversity action plan. However on average, Black, Asian and Minority Ethnic staff performing the same roles at the same grade aren’t paid less than White workers, the report said.
The killing of George Floyd by Minneapolis police in May spurred Black Lives Matter protests all over the world and prompted public companies including Lloyds to review their approach to diversity and inclusion.
Measures outlined in the bank’s “Race Action” plan, which includes promoting more black employees to senior roles and publishing an ethnicity pay gap report this year, are “credit positive because they will improve staff diversity at all levels and reduce Lloyds’ exposure to social risk,” Moody’s Investors Service said in a report published in July.
The London-based lender disclosed earlier this year that 1.5% of its total workforce and 0.6% of its senior management identified as Black. It also said it plans to increase Black staff representation within senior positions to at least 3%.
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