We are confident that we pay men and women equally for work of equal value. We do have a gender pay gap, defined as the difference in the average pay and bonuses of all men and women across an organisation. This occurs because we have fewer women than men in senior leader positions, fewer women in specialist roles attracting higher levels of pay and, over many years, relatively fewer women studying engineering at university. This results in an average hourly rate for our female employees that is 18.6% lower than the average hourly rate for our male employees in Shell UK.
“Everyone should have the opportunity to fulfil their potential,” Sinead Lynch, Shell UK Country Chair, said in response to this latest report. “Improving the gender balance is fundamental to the continued success of our business. We need to attract the best minds and build a culture where every voice can speak up and every voice is heard.”
For Shell UK, there are three main reasons for its improved year-on-year results: a continued focus on helping every employee fulfill their potential, changes to the structure of the UK business and adopting a global approach to developing talent. Our gender pay gap continues to reflect wider society.
Shell UK continues to work to improve the gender balance of its workforce. Our approach to improving diversity and inclusion – and through that gender balance – is based on four pillars: visible leadership, inclusive culture, employee recruitment and development, and proactive planning in Shell UK. For example, we have an aspiration for 35% of senior leaders to be women by 2025 with the ultimate aim of achieving balance across the UK organization.
We said last year that in the 12 years from 2005 to 2017, the number of female senior leaders in the UK more than doubled from 12.0% to 26.8%. In the last 12 months this upward trend continued to 28.1%. In recruitment, the number of female experienced hires in the UK continues to rise reaching 42.1% in the year to April 2018, up from 35.1% in 2005. Today, more than 44.0% of our graduate roles are held by women. It’s good progress, but there is more to do.
To read details of Shell UK’s gender pay gap report, go to www.shell.co.uk/genderpay
Notes for editors:
- One factor impacting our figures in 2018 is business change due to restructurings, mergers and divestments. This may mean that year-on-year figures might go down as well as up, however we have plans in place to deliver improvement in the long-term.
- In 2018 our report covers 5 UK entities, a reduction from 7 in 2017 as a result of the changes to our business.
- In fulfilling the UK regulatory requirements, Shell UK’s 2018 gender pay gap report sets out specific gender pay gap data for the five UK employing entities with 250 or more employees on April 5, 2018: Shell UK Limited, Shell International Trading & Shipping Co. Limited, Shell International Petroleum Company Limited, Shell International Limited and Shell Research Limited.
- There are two main reasons for Shell UK’s gender pay and bonus gaps: we have more men than women in senior positions, and women are under-represented in specialist roles such as petroleum engineering and trading roles. These specialist positions often attract high levels of remuneration due to a scarcity of required skills or highly competitive markets.
- The report has been produced in accordance with the guidance on managing gender pay developed by the Arbitration and Conciliation Service (Acas).
- Men have traditionally made up the majority of the oil and gas sector workforce. This is reflected across each of the Shell companies in the UK and across Shell UK, where 67% of our employees are male and 33% female.
- Bonus awards are gender neutral. However, in some businesses in the UK, such as trading, we see a greater bonus gap because of higher variable pay, reflecting market practice in that sector, and fewer women in trading roles. These bonuses have a significant impact on both our UK average bonus gap and the average bonus gap for specific businesses.
- The report also sets out the Shell UK consolidated pay and bonus gap data, which includes for all 12 employing entities in the UK as a more meaningful representation of our UK organisation.
- To read the full report click here
Royal Dutch Shell plc
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this press release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this release refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.
This press release contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition’, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2017 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, November 21, 2018. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this release.
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