2018 Goldman Sachs UK Gender Pay Gap Report

Memorandum from Richard Gnodde, CEO Goldman Sachs International, to Goldman Sachs Employees

25 March 2019 

Today, I am sharing with you our UK gender pay gap data for 2018.  This year’s data shows that the mean hourly pay gap at Goldman Sachs International (GSI) is 50.6 percent, while at Goldman Sachs (UK) SVC Limited (GSUL) it is 17.9 percent. These numbers are calculated based on an average of what we pay all men and women at our firm in the UK, regardless of their role, seniority or performance. 

The gender pay gap number does not measure whether we pay our people equally for equal work. We do. At Goldman Sachs, we set compensation by merit, not by gender or any other factor. We spend significant time on this during the compensation process to ensure that our commitment to equal pay is upheld. This is, and has been for many years, a critical priority for me and a crucial element of our compensation process.

While I am confident in the fairness of our compensation system, there is much more that we need to do to ensure that we have a diversity of talent at all levels at our firm.  David, John and Stephen sent a memo last week where they announced some important steps that we will take globally at the firm, including expanding our aspirational goals to increase the diversity of the new talent we hire into the firm at all levels.  They also recognized that experienced lateral hiring, while an important part of the firm’s growth, has been a significant contributor to the dilution of our diversity at more senior levels.  Because of that, we are expanding the sources for diverse talent and requiring businesses to interview two or more qualified diverse candidates for each open role. 

Within our region, we will be moving quickly to implement the new initiatives that David, John and Stephen announced last week. The EMEA Inclusion and Diversity Committee (IDC), led by Sally Boyle and Jim Esposito, is also working on some important initiatives to further drive greater diversity and inclusion in our region.  We will be reviewing some of their proposals with the European Management Committee today, and we look forward to sharing their initiatives with you in the coming weeks. 

While there is a lot left to do, I am proud that together we have also achieved tangible progress in some of the goals we have set ourselves. For example, we improved global representation of women campus analyst hires and women summer analyst hires in a step towards 50 percent representation of women across our global analyst intake by 2021. Separately, we introduced: new policies for in-home childcare and eldercare support in the UK; enhancements to our UK healthcare plans for fertility and gender dysphoria; availability of breast milk shipping for working mothers and enhanced training on managing parental leave.

Our people are our greatest asset. Ensuring that we recruit the best talent and give everyone the greatest opportunity to contribute is the most important task of those of us in leadership roles at the firm.  I appreciate the feedback and ideas that you have all shared with me in townhalls and in other contexts, and I look forward to continuing our work to improve inclusion and diversity at Goldman Sachs. 

 - Richard J. Gnodde

Charts 

Please note updates made to the 2017 disclosure data. Click here to view.

Hourly Pay and Bonus Pay 

The information below shows our mean and median gender pay gap and bonus gap for our two UK group entities Goldman Sachs International (GSI) and Goldman Sachs (UK) SVC. Limited (GSUL) as at the snapshot date (i.e. 5 April 2018 (pay) and in the 12 month reference period to 5 April 2018 (bonus)).

Proportion receiving a bonus

This chart shows proportion receiving a bonus by gender. 

The proportion of women and men at each hourly pay quartile

The information below shows gender distribution across the UK entities across four equally-sized quartiles. The quartiles demonstrate the fact that we have a higher proportion of women than men in more junior roles and a higher number of men than women in senior and management roles.

I confirm the accuracy of the 2018 Goldman Sachs UK Gender Pay Gap calculations in the above report.

 - Sally Boyle