Jan 24, 2021

Citigroup continues to lead on gender wage gap shrinkage

citigroup
humancapital
Equality
genderpaygap
Kate Birch
3 min
Committed to levelling set equal pay for employees, Citigroup discloses its latest global figures and reviews its compensation packages for 2021
Committed to levelling set equal pay for employees, Citigroup discloses its latest global figures and reviews its compensation packages for 2021...

Following Citigroup’s recent assessment of its pay gap analysis, disclosing a 27% shortfall in the average pay of its female employees, the multinational bank has announced appropriate measures for compensation and set goals for equal representation for 2021. 

This disclosure and announcement confirms Citigroup’s global commitment to narrowing the gender pay gap, with the banking group one of very companies worldwide to embrace the transparent assessment of the difference in the wages it pays to men and women. 

Citigroup pioneering in pay gap disclosure

Not only was Citigroup is the first bank to disclose its adjusted pay gap results, four years ago, it was one of the first companies worldwide to disclose its unadjusted or ‘raw’ pay gaps for both women and US minorities, the following year. 

While many of Citi’s competitors and other large companies also now reveal adjusted pay gap results, which compares compensation when taking into account the employee’s role, level and location, very few like Citi actually disclose the unadjusted or ‘raw’ pay gap, which is the difference in median total compensation without any adjustments. 

Such disclosures “hold us accountable for the progress we want to make in being a diverse and inclusive company”, stated Sara Wechter, Head of Human Resources, in a recent corporate blog post. “They also send an important signal to our colleagues, clients and partners about how we are continuously working to get this right.”

Latest analysis reveals slight improvement

Citigroup’s recent assessment of raw gap analysis for 2021 found that female employees made 26% less than male employees, while minorities still earn 6% less than non-minorities. This analysis shows a slight improvement by Citigroup to narrow the male female gender gap, an improvement from 27% a year ago and 29% two years ago. 

Following the review, Citi made appropriate pay adjustments as part of this year’s compensation cycle and committed to increasing representation of women at the highest level across the globe. 

“Continuing to reduce our raw pay gap requires that we make progress on our representation goals,” stated Wechter, adding that these are “to increase representation at the Assistant Vice President through Managing Director levels to at least 40% for women globally and 8% for Black employees in the US by the end of 2021, which we are committed to doing”. 

Wechtel states that Citi is committed to continuing to innovate how the company recruits and develops talent and to using data more effectively “to help us increase diversity at more senior levels at Citi”. 

The work that Citigroup is doing to understand pay equity extends beyond Citi’s walls, and the company has collaborated with The Female Quotient, a female-owned business advancing equality in the workplace through the power of collaboration, to develop a free digital tool that provides all companies with a snapshot of their raw pay gap.

“We view it as a way to further equality across all types of companies, and using it as a concrete measure to increase diversity efforts more broadly. 

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Jun 6, 2021

Business Chief Legend: Former PepsiCo CEO Indra Nooyi

PepsiCo
businesslegend
Leadership
CEO
Kate Birch
4 min
As the first and only female CEO of PepsiCo, Indra Nooyi smashed corporate America’s glass ceiling and transformed the performance and purpose of PepsiCo

At a recent Asia Pacific-focused event, organised by P&G and UN Women, the former CEO of PepsiCo, Indra Nooyi, shared why enabling a diverse and inclusive workforce can directly impact the bottom line.

“If 80% of our products are bought by women because they were the gatekeepers at home, or make all the purchases, why don’t we have a large number of women represented in our ranks,” she told a virtual global crowd of thousands. 

Such business advice may seem rather obvious today, but in 2006, when Nooyi put this business philosophy into practice at PepsiCo, it was both pioneering and progressive. Because not only did the performance of PepsiCo transform under Nooyi’s 12-year tenure as CEO, but so did its purpose and people, with Nooyi widely praised for transforming the firm’s diversity and inclusion agenda.

And who better to do so than someone who had herself smashed the corporate American glass ceiling. Because, when Nooyi became CEO in 2006, following 12 years as Chief Strategist, not only was she among just a handful of female CEOs leading Fortune 500 firms, and one of very few foreign-born executives, she was both the first female CEO to lead PepsiCo, and the first person of colour. Not to mention also being a wife and mother.

Proving performance and purpose can co-exist

And she more than got the job done, growing PepsiCo revenues by 80%, making the firm more global than it had ever been, so that by the time she stepped down in 2018, nearly 20% of net revenues came from MENA, Asia and Latin America, and expanding the business significantly with key acquisitions (Tropicana) and mergers (Quaker Oats).

But it was Nooyi’s strategic redirection of PepsiCo, transforming both its purpose and people, that really made an impact. As chief architect of PepsiCo’s pledge, Performance with Purpose, unveiled in 2006 and a precursor to the modern sustainability movement, Nooyi repositioned the firm to focus on what is best for the world and for its people, from sustainability and social responsibility to diversity and diet.

She transformed the firm’s D&I agenda, created a culture where workers were encouraged to stay with the company, moved corporate spending away from junk food and into healthier alternatives, redesigned packaging to reduce waste, and switched to renewable energy sources and recycling.

As she told Forbes in 2017, “I wanted to make sure that PepsiCo was not only delivering top-tier financial returns but doing so in a way that was responsive to the needs of the world around us.”

Indra Nooyi talking with US President Biden (then Vice President) in 2014

Smashing corporate America's glass ceiling

And it was this ability to realise a world in which business is both practiced and recognised as a force for good that has earned Nooyi a place in CEO history books and landed her numerous accolades, including 11 honorary degrees, the Hero of Conscious Capitalism award at 2017’s CEO Summit, consistent inclusion in the world’s 100 most powerful women (including #1 by Forbes in 2009/10) and most recently, induction into the National Women’s Hall of Fame.

Not bad for a girl from Chennai, India, who was expected to lead a conventional life as a wife and mother, but by her own admission was a bit of a “rebel”, with a passion for playing cricket and lead guitarist in a band. In the late 70s, she relocated to the US, earning herself a Master’s in management from Yale, and beginning a four decade-long strategy-focused career that was born at BCG in 1980 where she spent six years and ended in 2018 following 24 impactful years at PepsiCo.

And while she has now retired from corporate life, Nooyi continues to wield the influence that so positively changed the direction of one of the world’s largest companies. As well as serving on the board for ecommerce giant Amazon, she speaks at summits close to her heart, and has recently penned her memoir, advising corporates on better integrating work and family.

And while she has now retired from corporate life, Nooyi continues to wield the influence that so positively changed the direction of one of the world’s largest companies. As well as serving on the board for ecommerce giant Amazon, she speaks at summits close to her heart, and has recently penned her memoir, advising corporates on better integrating work and family. 

Indra Nooyi's memoir will be available from September 28, 2021, and can be pre-ordered. 

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