Shearman & Sterling LLP Closing the Gender Pay Gap | 25
Companies should consider
conducting a comprehensive pay
audit that examines pay practices at
every level in the organization, and
make adjustments to practices that
perpetuate pay differences.
Companies must train managers
to identify unconscious bias in
hiring, promotion and compensation
decisions. Many factors have been
cited as contributing to the lack of
promotion of women — including
job "segregation," where women
are tapped for roles that typically
do not lead to career progression,
and unintentional penalties imposed
following leaves of absence
for caregiving. Further, provide
female employees with mentoring
opportunities that can serve to guide
them in their career paths.
Ensure those making hiring and
promotion decisions are held
accountable for making progress
towards gender equality in the
organization. Recently, Uber
announced it would be linking
incentive compensation to the
achievement of workplace
diversity goals as it seeks to
increase the percentage of women
and other underrepresented
groups in managerial roles.
Take stock
Examine hiring and
promotion practices
Hold managers and
directors accountable
Establish goals for gender
representation at senior levels
throughout your organization
and track your progress
against your goals.
As part of a company's regular
shareholder engagement,
discuss with key shareholders
their posture on gender pay
parity. Companies should
be prepared to have a frank
dialogue on the issue and
discuss goals and steps taken
by the company.
Set goals
Engage with
shareholders
The following is a list of action items for companies concerned about pay inequality within their organization.
WHAT CAN COMPANIES DO NOW?
