Electrolux PLC Gender Pay Gap Report 2018

At Electrolux our purpose is to shape living for the better. Innovation and sustainability is at the heart of what we do to create better experiences for our customers, partners and employees. We are a leading global appliance company and our headquarters are located in Stockholm, Sweden, and the Electrolux share is listed on the exchange Nasdaq Stockholm. Through our brands, including Electrolux, AEG, Anova, Frigidaire, Westinghouse and Zanussi, we sell more than 60 million household and professional products in more than 150 markets every year.

We once again embrace the gender pay gap regulations requiring all UK organisations employing 250 people or more to publish statutory calculations showing the pay gap between male and female employees.

Our second gender pay gap report shows that our pay gap is largely unchanged and in some cases has increased, which shows us that we have work to do. This work has started, however we acknowledge that it will take us time to achieve the sort of change we are aiming for. We are not content with the gap we have, as it means that we are not opening up potential in our people. Our goal long term is to achieve gender parity across the organisation and minimising our gender pay gap is a fundamental key to this.

Key data

Gender pay gap

• The gender pay gap shows the difference in average pay between women and men. It does not measure equal pay, which relates to what women and men are paid for the same or similar jobs or work of equal value.

Mean and median gender pay gap

• The mean gender pay gap is the difference in average hourly rates of pay for all men and all women, expressed as a percentage of the average hourly rate for men.
• The median gender pay gap shows the difference between the median (middle) value of hourly pay rates (when ordered from lowest to highest) for all men in an organisation, and all women, expressed as a percentage of the median hourly rate for men. This is the widely used government measure.

Mean and median bonus pay gap

• The mean gender bonus gap is the difference between the average bonuses received by men and by women, expressed as a percentage of the average bonus for men.
• The median gender bonus gap is the difference between the median (middle) value of bonuses (when ordered from lowest to highest) received by men and by women, expressed as a percentage of the average bonus for men.

What are the causes of our gender pay and bonus gaps?

We know that the main causes of our gender pay gap are:

• we have a higher overall proportion of men in the workforce - 43% women and 57% men; we know that as a business and as an industry we tend to attract more men
• we have fewer women than men in our senior and management roles – more women than men are employed in support or customer service roles and more men than women in technical or management roles
• overall the number of men and women receiving a bonus remains roughly the same, however the bonus gap remains large, most likely driven by the higher number of senior men in the top two quartiles
• our data includes a group of senior international employees who work at Electrolux Group level and not in the UK organisation, and who as a group are predominately male. When excluded from the calculations, our mean gender pay gap reduces to 18.4% and our median bonus gap to 12.4%.

What action are we taking?

The Electrolux group is committed to making a positive difference for women in the workplace. Last year the group set a target to have 35% women in senior-level positions by 2020.

Long term our goal is to achieve gender parity. In the short and medium term we have redefined the goals that we established in 2018 to enable us to focus clearly on our priorities. This will be in two stages:

1. Analyse our data to understand what is behind our gender pay gap figures

We are committed to improving the number of female leaders at Electrolux and to do this we are going right back to basics and undergoing a full review of gender representation across the UK organisation. We are seeking to understand how each gender is represented in different jobs and levels across the organisation, starting with how we recruit men and women into the organisation and how we promote within, how we develop and manage male and female talent, as well as analyse male and female performance and pay review, bonus and cash benefit data to ensure that we have a full picture of how men and women progress into, through and upwards in the organisation.

2. Use the data to focus our efforts

Once we have the data behind our report figures, we can focus our efforts on the reasons for our figures, such as our processes, policies and/or behaviours. This may include reviewing our people policies and procedures to ensure they are inclusive both in principle and practice, as well as reviewing and raising the focus of flexible working – such as seeking ways to support line managers in embracing all types of flexible working options for all job levels, regardless of gender, so that flexible working becomes a cultural norm.

“As Head UK & Ireland, Electrolux Major Appliances, and HRBP for Major Appliances for Electrolux PLC, we are authorised to confirm that the information published in this report, in accordance with regulation 2 of The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 is correct.”

Peter Spencer                                                             Elizabeth Hawkes

Head of UK & Ireland                                                HR Business Partner

Electrolux Major Appliances                                      Electrolux Major Appliances