Gender pay gap reporting and employee share schemes
Produced in partnership with Sam Whitaker of Shearman & Sterling LLP
Gender pay gap reporting and employee share schemes

The following Share Incentives guidance note Produced in partnership with Sam Whitaker of Shearman & Sterling LLP provides comprehensive and up to date legal information covering:

  • Gender pay gap reporting and employee share schemes
  • Gender pay gap reporting—basic principles
  • Relevance and treatment of employee share plans in gender pay gap reporting
  • Assessing the bonus period for share plans/options
  • Inclusion of share awards under foreign/parent company share plans?
  • Treatment of share awards in gender pay gap vs gender bonus figures
  • Specific treatment of different types of plans

On 6 April 2017, the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the Regulations), SI 2017/172 came into force. Under the Regulations, SI 2017/172, large voluntary and private sector employers (ie those employing 250 or more employees as at 5 April of each year) are required to make certain public disclosures on their gender pay gap figures for relevant employees. This Practice Note looks at how remuneration and rewards which are received by employees through various types of employee share plans are treated for the purposes of gender pay gap reporting and, in particular, how such share plans are treated in assessing bonus pay and the gender bonus gap.Equality Act 2010 (Gender Pay Gap Information) Regulations 2017, SI 2017/172

Gender pay gap reporting—basic principles

The Regulations, SI 2017/172 apply to all relevant employers. Relevant employers are private and voluntary sector employers with 250 or more employees as at 5 April each year (although a report in August 2018 by the House of Commons Business, Energy and Industrial Strategy Committee, calls on the government to widen the net of organisations required to publish gender pay gap data to those with over 50 employees—see: Share Incentives weekly highlights—9 August 2018).The term ‘relevant employer’ is not defined exhaustively by the Regulations, SI 2017/172 but regulation 14 (which sets out in relation to various different types of entities, which person must sign a written statement certifying the accuracy of the gender pay gap reporting figures) envisages that it will, at the very least include companies, limited liability partnerships (LLPs), partnerships, unincorporated bodies and any other type of body that employs individuals.The Regulations, SI 2017/172,