UK Gender Pay Gap Report 2023

People · 28 March 2024Michelle Muyunda

We’re pleased to announce the release of our UK Gender Pay Gap Report for 2023, as part of our ongoing commitment to transparency and our dedication to fostering gender equality within our workforce and across our industry.

What is the Gender Pay Gap?

The Gender Pay Gap shows the difference between the average pay and bonus of men and women across a workforce. UK companies with 250+ employees are legally required to report annually on their Gender Pay Gap. Our report covers UK employees, and is a snapshot taken by all reporting companies on the same date — in this case, 5 April 2023.

In addition, we have divided all UK employees into four pay quartiles based on their hourly compensation. A breakdown of the percentage of men and women in each quartile is provided below.

Although our Gender Pay Gap report categorises individuals by their legal gender, either men or women, as a company we're committed to treating all Revoluters fairly, including those who are trans, non-binary, or any other gender identity.

Revolut’s Gender Pay Gap

As of 5 April 2023, we successfully reduced our mean (hourly) average pay gap from 25.38% to 19.54%, reflecting a notable 5.84% improvement. Positive reductions were also observed across various metrics: the median pay gap decreased by 3.82%, dropping from 22.22% to 18.4%.

An increased representation of women in the highest pay quartiles and a decrease in their representation in the lowest quartile largely influenced this positive shift. In 2023, ‌representation in the upper quartile rose from 11.4% (unchanged from 2021 and 2022) to 15.1%.

Revolut’s Bonus Pay Gap

The mean bonus pay gap experienced a 17.69% reduction, declining from 58.2% to 40.51%, and our median bonus pay gap has reduced significantly from 53.75% in 2022 to 0% in 2023.

At Revolut, employees ‌receive bonuses in cash or equity, depending on their role. However, for clarity and compliance with government guidelines, this report focuses solely on cash bonuses received and equity bonuses that have been exercised. The decision to exercise equity bonuses varies among employees each year, depending on their preferences. When fewer equity bonuses are exercised, it tends to narrow our bonus gap. This is often due to a higher percentage of men in the upper quartile of pay.

With fewer people exercising large equity bonuses in 2023, the bonus pool used to calculate the gap for this report is primarily made up of cash rewards. Currently, these cash bonuses are available in roles where we find greater women's representation. We see the effect of this as a higher percentage of women receiving bonuses (35.7%) compared to the year prior (21.5%). Additionally, the difference between the percentage of men and women who received bonuses narrowed from 8.5% in 2022 to 3.4% in 2023.

These factors have contributed to narrowing the median bonus pay gap, and we're committed to achieving substantial and lasting change in our mean bonus gap. To accomplish this, we must ensure that we not only retain our women employees so they can increase their vested equity, which they are eligible to exercise, but also promote more women into senior, higher-paid roles where they are eligible to receive equity bonuses.

Progression over the years

Our progress in reducing salary and bonus pay gaps is measured by key metrics, including the percentage of women in the lower and upper quartiles and those receiving bonuses.

Pay gaps often stem from gender imbalances in job levels, creating disparities between men and women. The objective is to decrease the overrepresentation of women in the lower quartile and enhance their presence in higher positions, directly impacting the pay gap. While we have seen a 1.2% increase in women in the highest-paid positions since 2020, our overall mean pay gap reduction is 3.6%.

We therefore acknowledge the need for sustained efforts in balancing gender representation, especially in senior roles, to close the pay gap entirely. Whilst our workforce increased by 107 people, our gender representation has increased by 1% in the last year, taking us to 25% women overall. If more women occupy roles in the upper and upper-middle quartile pay bandings, whether through promotion from junior roles or by direct hire, we anticipate continued progress in closing the pay gap over the coming years.

Notably, we've made significant strides in the number of women receiving bonuses (an increase of 28.3% since 2020). We’re seeing the positive results of this progress: we've decreased our mean bonus gap for the first time and we've closed our median bonus gap (a 29.5% reduction since our first reporting year). However, due to vesting schedules typically spanning three years, recent changes in gender parity across seniorities are yet to be reflected in vested equity that's eligible for exercise. These changes may significantly impact future bonus gap reports.

In preparing this year's report, we identified some discrepancies in the methods used to calculate data for previous reports. To ensure accurate representation of year-to-year trends, we have recalculated the data from previous years in the preceding "Progression over the years" section, as well as throughout the report.

Reducing our Gender Pay Gap

We’ve seen that a positive reduction in the Gender Pay Gap comes from intentional and consistent efforts to nurture the women in our company and facilitate their growth. Moving forward, we'll continue to support women’s development, while establishing ourselves as an employer of choice for talented women.

We'll continue with processes that have shown positive outcomes, such as our new promotion approach, which elevated women's representation from 35% in 2022 to 44% in the 2023 promotion cohort. We'll further prioritise our aspiration to achieve 30% representation of women in leadership positions by the end of 2025, progressing from our current standing of 21%. This objective remains a focal point in our recruitment, retention, and progression initiatives.

Alongside the continuation of our promotion approach and prioritisation of our 30% target, we are implementing several initiatives to enhance gender inclusion:

  • Recruitment and Progression Focus: reviewing recruitment and talent management processes to eliminate barriers for women in entering or advancing within the company
  • Ensuring Promotion Accountability: implementing mechanisms to track the progression of women within teams and fostering gender balance in promotions, creating leadership visibility and responsibility for achieving this goal
  • Empowerment through our Guild: allocating resources to RevWomen, our women's guild, to continue empowering, encouraging, and inspiring women within the company

Creating and sustaining an inclusive and supportive culture for all women at Revolut is key to narrowing our pay gap. By fostering inclusion, we enhance the retention of talented women in our workforce.

Future pay gap reporting

While we have been focusing on gender diversity, we recognise the need to go further in our inclusion efforts. We're committed to collecting more data to be able to report on more than just gender in the near future. Currently, we lack the necessary data to report on any pay gaps outside gender, but we want to make this a priority. Measuring pay gaps is crucial because acting on what we measure will help us address and close any pay gaps within our company and the broader sector.

Quote from Francesca Carlesi, CEO, Revolut UK:

“We have made important steps in reducing our gender pay gap, but there is of course more to do. We remain fully committed to ensuring that our products and services, used by millions across all demographics, are built by an equally diverse group of Revoluters.”

I confirm the data reported is accurate.

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