Citi's Latest Update on Global Pay Equity
By Sara Wechter, Head of Human Resources January 21, 2021 03:00 PM
Four years ago, we were the first bank to disclose our adjusted pay results and the following year we became one of the first companies to disclose our unadjusted or “raw” pay gaps for both women and US minorities. Our commitment to that transparency continues today.
These disclosures hold us accountable for the progress we want to make in being a diverse and inclusive company. They also send an important signal to our colleagues, clients and partners about how we are continuously working to get this right. As a reminder, the adjusted pay gap is a measure of "like for like" – comparing the compensation of women to men and US minorities and non-minorities when adjusting for factors such as job function, level and geography. The raw gap measures the difference in median total compensation when we don't adjust for any factors. The existence of our raw pay gap reflects a need to increase representation of women and US minorities in senior and higher-paying roles.
We looked at both numbers again this year and found that, on an adjusted basis, women globally are paid on average more than 99% of what men are paid at Citi and there was no statistically significant difference in adjusted compensation for US minorities and non-minorities. Following our review, we made appropriate pay adjustments as part of this year's compensation cycle.
This year's raw gap analysis showed that the median pay for women globally is better than 74% of the median for men, up from 73% last year and 71% in 2018, and that the median pay for US minorities is just under 94% of the median for non-minorities, which is similar to last year and up from 93% in 2018. Continuing to reduce our raw pay gap requires that we make progress on our representation goals – 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.
It's important to remember that these reviews are a snapshot of our current employee base, which is constantly changing as people come in and out of the firm, our colleagues are promoted and as market dynamics change.
For our part, we're continuing to innovate how we recruit and develop talent and use data more effectively to help us increase diversity at more senior levels at Citi. Our philosophy is that every member of Citi's team is responsible for this progress in making Citi an even more inclusive and equitable workplace.
This work to understand pay equity extends beyond Citi's walls. We are proud to collaborate with The Female Quotient to develop a free digital tool that provides 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. For more information, visit The Female Quotient's Advancing Equality Calculator.