LSEG Global
Pay Equity Report2022

London Stock Exchange Group plc

Achieving pay equity globally

At LSEG, we arecommitted to achieving
pay which is free ofbias – and to building
an equitable and inclusive
environment for all.
It’s clear society and industry have evolved
greatly over the centuries, from the firstlegislation enshrining political and religious
rights for women in the mid-1800s, to the
Civil Rights movement of the 1960s, and more
recent action by networks such as Black
Lives Matter. While progress has been made,there are still significant issues that need
to be addressed in order to eradicate bias.
They include achieving true pay equity,
regardless of gender or ethnicity.
At LSEG we are committed to shaping inclusionand contributing to sustainable economic
growth for the communities and societies where
we operate. We are also committed to improving
pay equity in our own workforce of approximately
24,000 employees in 65 countries.
2.

We believe data-driven reporting, transparency
around pay and a commitment to true diversity
and inclusion (D&I) is fundamental to continued
and sustainable advancement for those whohave historically faced discrimination in thelabour market. This is why we are publishing
our global Pay Equity Report.
A typical gender pay gap report compares
the mean and median earnings of men
in an organisation to those of women,
but gives limited information about whythat gap exists. We want to go further.
As an organisation, our analysis has gone
beyond the raw statistics so we can understandthe factors contributing to any pay gaps, why
they exist and how we can take targeted action.
This report therefore covers gender-related
pay data in all the countries where we have
employees, as well as our ethnicity pay gap
where we are able to collect the data.

We challenged ourselves to apply
the same level of scrutiny to genderand ethnicity reporting as we do tofinancial reporting, to understandand be better equipped to explain
all elements of the pay gap andmethodology across all geographies.

LSEG Pay Equity Report 2022

Our ambition

Achieving pay equity globally

SECTION 1:

Inclusion defines who we are as anorganisation and we all have a role to play increating a culture where everyone feels they
belong. We are focused on developing ourleaders’ behaviours, so they can role-model
inclusion in everything we do. We have eight
thriving Inclusion Networks that help shape
our D&I strategy and hold us to account on
the progress we are making.

Achieving pay equity globally

Inclusion defines who we are
Our D&I strategy is built on taking anevidence-based, data-led approach todevelop our understanding, identify areas
for focus and then measure our progress.

We are pleased to share our first Pay Equity
Report that considers gender, globally,and ethnicity for United Kingdom (UK) andUnited States (US). The report contains our
methodology, which we’ve partnered with
Mercer to carry out, and actions we are taking
to drive pay equity and build an equitable andinclusive environment for all.

3.

LSEG Pay Equity Report 2022

Above all, we are challenging ourselves
to be better, by constantly reviewing ourprocesses to identify and tackle any residualbias. Our hope is that the changes we makewill tangibly improve equity, diversity andinclusion at LSEG – and that others canlearn from them too.

Harnessing the power of data

LSEG’s acquisition of Refinitiv transformed
our business overnight and presented us
with the challenge of balancing different
reporting requirements and standards across
67 markets. This report goes beyond statutory
reporting requirements (such as the UK
gender pay gap) to provide a best-in-class
pay equity assessment.
We want to use this study to understand what
drives all differences in pay and opportunity
at LSEG, by looking at both the Identifiable
and Non-Identifiable Pay Gaps for employees
doing similar work.
Our aim is to use this data to build andimplement a strategy that not only tackles
pay equity, but also drives equal opportunity,
representation and inclusion throughout
our organisation.
4.

LSEG engaged Mercer, a global HR
consultancy that specialises in pay
equity, D&I and rewards to support andindependently quality assure our global
pay equity study. This study analyses ourpay data, on a job-by-job basis for our global
employee population. It is an enhancementon the simple single country comparison ofmean and median hourly pay. The study’s
deep statistical analysis of pay considers
many identifiable factors known to impact
compensation, including but not limited
to seniority, location, job role, experience,business sector and performance.
This enables us to understand how muchof a headline (Raw) pay differentiation
is explainable due to identifiable factors,
and how much is due to non-identifiablefactors that may result from bias.
The process
Mercer first identified our Raw Pay Gap
which is the comparison of the mean andmedian pay between gender/ethnicity
groups across LSEG. This is similar to theway some statutory gender pay gap reports
show their figures. (For our 2022 UK gender
pay gap report, see Appendix 2).

From the Raw Pay Gap, Mercer useda statistical analysis to calculate boththe Identifiable Pay Gap and theNon-Identifiable Pay Gap.
–

The Identifiable Pay Gap shows the gap
in pay between two groups that can be
attributed to explainable and objective
factors. These factors may include
seniority, job role, location, businesssector, experience and performance.

–

The Non-Identifiable Pay Gap shows
the remaining pay gap once Identifiablefactors have been accounted for.
This approach indicates that thedifferences in pay are unexplained
and may be due to biases or inequity.

Mercer’s team of experts useda well-established methodology,
developed over 25 years, to ensure
we took an objective, robust
approach to analysing our pay
equity data. This methodology
is widely recognised and has
been used by many top FTSE 100
companies when undertaking pay
equity reporting. Partnering with
Mercer brings quality assurance
to our results.

By understanding both Identifiable and
Non-Identifiable Pay Gaps, we can locate
where we need to focus our attention to
reduce them.

LSEG Pay Equity Report 2022

Pay equity is ensuring nodiscrepancies in pay exist
as a result of personal
characteristics, such as
gender, ethnicity, age
and nationality.

Our methodology

Harnessing the power of data

SECTION 2:

This section presents our pay equity statistics, and lays out the
key reasons behind our current Identifiable and Non-Identifiable
Pay Gaps for gender, as well as for ethnicity.*
Total compensation by gender (global)
The chart below shows the Raw Pay Gap for women compared
to men, and the percentage that is attributed to Identifiable and
Non-Identifiable factors.

Pay Gap
32.6%

Raw

31.1%

1.5%
NonIdentifiable

Identifiable

We are pleased that our Non-Identifiable Pay Gap(1.5%) figure is low. We want it to be as close to zero
as possible and so we are continuing to take action.
Our current figures show that there is little disparity
in pay between men and women at LSEG doing
similar work under similar conditions. We are fullycommitted to ensuring any gaps fall below the levelof statistical significance.

Glossary
Pay equity – Equal pay for the same work in thesame conditions.
Median – The value in the middle of a data set if
the salaries were ranked from lowest to highest.
Mean – The average value of a data set andis calculated by dividing the sum of salaries
of members of the group by the total numberof people in the group.
Statistically significant – Statistical significancemeans we find an outcome evidenced throughstatistical analysis. Non-Identifiable Pay Gaps thatare statistically significant indicate that differencesin pay may be due to systematic differences which
may be caused by bias.
Senior Leadership – Made up of Group
Executives and Group Leaders at LSEG.

–P ositive figures indicate pay is in favour of men.
– Statistically significant gaps are shown in bold.
*More information on what makes up
our data sets can be found in Appendix 1.
5.

Our pay equity – gender

Our pay equity – gender

LSEG Pay Equity Report 2022

SECTION 3:

Our pay equity – ethnicity
Total compensation by race andethnicity group (UK and US)
The chart details the Raw Pay Gap for
employees from underrepresented ethnic
groups when compared to white employees,
and the percentage that is attributed to
Identifiable and Non-Identifiable factors(data from UK and US only).

Pay Gap
All underrepresented ethnic groups

17.8%

18.1%

Pay Gap–U nderrepresented ethnic groups are defined as all
ethnicities reported on other than white. We use therecommended government census categories whencollecting ethnicity data.

By underrepresented ethnic groups■ Raw Pay Gap■ Identifiable Pay Gap■ Non-Identifiable Pay Gap

1.4%
36.1%

– ‘Other’
includes individuals who have identified as:

Our pay equity – ethnicity

25

34.7%

– US – Native American or Alaska Native;
Native Hawaiian or Pacific Islander andtwo or more races.
2.2%– UK – Mixed: other; white & Asian;white & black African; white & black
Caribbean; Arab and any other.

0.4%
18.7%

– Positive figures indicate pay is in favourof white employees.
– Negative figures indicate pay is in favour of
employees from underrepresented ethnic groups.

11.9%

23.4%
21.2%

18.3%

13.2%

– Statistically significant gaps are shown in bold.
–1.3%

NonIdentifiable

–0.3%
Raw

6.

Identifiable

Underrepresented
ethnic group

Analysisheadcount

Asian

1,146

Black

297

Hispanic

174

Other

197

Black

Our Non-Identifiable Pay Gap figure for
ethnicity is -0.3% which is not statisticallysignificant. This means that there is noevidence of systematic differences in pay
between underrepresented ethnic groups
and white employees overall.

Hispanic

Other

We continuously review our processes
and take action to reduce and maintainany gaps below the level of statisticalsignificance. We will discuss the actions
we are taking to help reduce our Identifiable
and Non-Identifiable Pay Gaps overall andwithin specific underrepresented ethnic
groups in Section 4.

LSEG Pay Equity Report 2022

Asian

Our study finds that LSEG’s Identifiable Pay Gaps are mainly driven by the following factors(listed in descending order of impact):– Location and job family are recognised
as important factors in the model.
2. Experience– Experience (proxied by tenure) is positively
recognised in the majority of the businessdivisions by rewarding more job-specifictenure and external experience.
3. Business sector– Business area impacts pay in a moderate
way, e.g. employees in Technology usually
have higher pay than employees in otherareas of the business.

7.

4. Performance– Our data shows elements of a‘pay for performance’ reward approach.
Low performance seems to consistently
reduce pay outcomes while better
performance is rewarded.
5. Hiring and promotion– Employees recently hired are in general
paid comparably to incumbents.
6. Supervision– Data doesn’t indicate that being in
a supervisory role is a strong factor
impacting pay. This finding is most likely
because the job and grading structures
have already taken supervisory
responsibilities into account.

LSEG Pay Equity Report 2022

1. Role and location– Career stage is a major factor impacting
pay and by far the strongest of all.
The grade-related pay increment is higher
in senior grades when compared tojunior grades.

What drives our gaps

What drives our gaps

Taking action on our pay equity gaps–

We also believe that being able to explain
the factors behind our Identifiable Pay Gaps
does not justify them, nor should it prevent
us from acting to improve on them.

We are also addressing our Identifiable
Pay Gaps, which account for almost all pay
differentiation across LSEG. Through ouranalysis, we have been able to understandthe key factors that affect pay for gender aswell as ethnicity.

How we are addressing the
Non-Identifiable Pay Gap–

Regular review of pay and performancepolicies and practices – Our pay
and performance policies are adopted
across the globe and regularly reviewed
by LSEG’s Executive Committee andRemuneration Committee, with theaim of ensuring market-alignment andcompliance, improving transparency
and reducing any inequity in pay.

* Mercer equity database8.

How we are addressing the Identifiable
Pay Gap

Even though we can attribute our Identifiable
Pay Gaps to various recognised factors,
we believe there are actions we can taketo reduce them further. By improving
representation globally at all levels,
geographies and functions, we can begin
to reduce our Identifiable Pay Gaps between
the different genders and ethnicities –particularly in terms of job roles.
We are taking a data-driven approach toincreasing levels of representation at both
Senior Leadership and Group Director levels.

Our goals for this are:Senior Leadership goals set in 2021–

40% women by the end of 2022–

20% from underrepresented racial andethnic groups by the end of 2023–

25% from underrepresented racial andethnic groups by the end of 2025

Group Director level goals set in 2022–

40% women by end of 2027–

25% from underrepresented race andethnic groups by the end of 2027

While we are proud of the progress wehave made on gender representation,
we acknowledge that we can do more toincrease levels of ethnic representation at
Senior Leadership and within our Group
Director population.
For more details on our progress against
our goals, click here to see ourSustainability Report.
In 2023, we are reviewing our ethnicity
disclosures to ensure our goals are
representative of our growing employee
and customer base, and are usefulmeasures of our progress.

LSEG Pay Equity Report 2022

Audit salaries and bonuses – As partof the Annual Compensation Review
process, we provide reporting that shows
the average level of salary increase andbonus awarded to men and women,
based on geography, grade andperformance. The aim is to allow ourleaders to ensure there are no biases.

We recognise that our 2022 results for gender(1.5%) and ethnicity (-0.3%) are significantly
lower than industry averages. Typically,organisations starting on a pay equity journeyshow Non-Identifiable Pay Gaps of 3-5%*.
With a FY22 total reward spend of c.£2.3bn,
even any small pay gap can equate to asignificant monetary amount. Our aim therefore
is to continually test and assess our Reward
Framework and its processes to help minimise
any and all pay gaps.

Taking action on our pay equity gaps

SECTION 4:

Building capabilities for people leaders –LSEG is working to embed best practicearound identifying talent and mitigating
bias in our talent identification,assessment and selection processes.
We offer inclusive hiring masterclasses,
covering drafting job descriptions,comprehensive sourcing for bothinternal and external talent, and bestpractices when screening andinterviewing candidates.

–

Inclusive leadership training – Thishas been completed by all Executive
Committee members and their leadershipteams, reinforcing the concept thateven the smallest acts and decisions
can help colleagues feel more included.
This approach is helping us build morediverse and inclusive teams across ourorganisation.

–

Diverse shortlists and hiring panels –Our guidelines and best practice insupport of all hiring decisions reinforce
our intention to provide a diverse and/or
gender-balanced candidate slate.
We promote gender-neutral and inclusive
language in job descriptions and adverts,
and use dedicated technology to provide
this support.

We will be setting out additional
inclusivity training across LSEG for
all our people leaders. Its an aim is todevelop their understanding of diversity
and allyship, giving them greater
responsibility for ensuring equity andinclusion in the employee experienceand life cycle at LSEG

9.

Addressing our pay equity gaps–

LSEG Pay Equity Report 2022

Achieving our goals
To achieve our goals and address our Identifiable Pay Gap we are taking action, including:Promoting an inclusive culture – Our eightglobal Inclusion Networks provide open
platforms where employees are encouraged,
educated and empowered. Open to
everyone, they foster discussion aroundimportant issues and help establish
connections across all levels and locationsof LSEG. This networking serves to break
down silos, helping realise our ambition
to be a truly diverse, inclusive culture.
Our employees are the key to our success,so providing an equitable, inclusive culture for
all at LSEG is essential for us to thrive. For thisreason we will continue to take a data-led
approach to pay equity; to be transparent in
the way we communicate our position and ourongoing efforts to improve; and to promoteand lead positive change, as we build a moresustainable, equitable future together.

10.

By better understanding our own
position, we are taking responsibility
and holding ourselves to the highest
standards. At LSEG, we are committed
to creating a more diverse and inclusive
environment for our talented people;
ensuring their skills, experiences, ideas
and hard work are recognised above all
else, and building a better future where
everyone feels they belong.

Addressing our pay equity gaps

Career progression programmes –Last year, we piloted two new initiatives:
Illuminate, a UK and US programme, focusedon developing black, Latinx and ally leaders;
and the APAC Accelerator, designed tosupport talented future leaders at criticalcareer milestones.
These pilot programmes have been agreat success. Progressing talent to growrepresentation at senior levels is an importantpart of addressing our pay gaps, and we are
excited to continue these programmes in
2023.

LSEG Pay Equity Report 2022

Actions to support our wider D&I strategy
While our goals and many of our D&I
programmes have not been implemented
to directly address pay equity, they are partof our wider strategy aiming to increaselevels of inclusion and career progression
for underrepresented groups.

What makes up our pay equity data?
We carried out analysis across two sets of data.
– Gender* data on a global basis– Ethnicity for the UK and US,** based on the employees who have recorded theirethnicity in our HR system. These are the countries where we currently have accessto enough reliable data to undertake an accurate study

What makes up our pay equity data?

APPENDIX 1:* L egislation in most countries requires gender to be reported in a binary way, recognising only men andwomen; as such we have used the binary gender data available to us in our HR system in this report.
However, we recognise that gender is not binary and that many people do not fall into these categories.
** We have a ethnicity disclosure rate of 86% across the UK and US. While we would like this to be 100%,
our current disclosure figures mean we have a strong data set for conducting our pay equity analysis.
We continue to encourage individuals to submit their ethnicity data on our HR system where it is permitted
to do so, helping us build an increasingly accurate understanding of our pay equity figures.

11.

LSEG Pay Equity Report 2022

In 2023, we want to improve how wecollect and disclose our ethnicity data globally.
This is a nuanced topic as data cannot becollected consistently across all our locations– unlike other areas of focus, such as gender.

UK gender pay gap data

APPENDIX 2:

UK gender pay gap data
The UK Government requires that organisations with more than 250 employees report theirgender pay gap (GPG). The table shows LSEG’s UK statutory disclosures for our four legal
entities covered by the regulation for the reporting period 6 April 2021 to 5 April 2022: LSEG
Employment Services Limited (LSEG ESL), London Stock Exchange plc (LSE plc), LCH Limited(LCH Ltd) and Refinitiv Limited. Variable pay includes Long Term Incentive Plan (LTIP) awards,
which are used to align Senior Leadership roles to long-term goals and strategic growth of LSEG.

Declaration

I confirm that the data and information presented below is accurate and meet the requirementsof the UK Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

David Schwimmer
Chief Executive Officer
London Stock Exchange Group

London Stock Exchange plc

LCH Ltd

Refinitiv Limited

MeanMedianMeanMedianMeanMedianMeanMedianGender hourly pay gap

9%

11%

Gender hourly pay gap

7%

10%

Gender hourly pay gap

16%

18%

Gender hourly pay gap

11%

11%

Gender variable pay gap

8%

14%

Gender variable pay gap

33%

15%

Gender variable pay gap

52%

42%

Gender variable pay gap

16%

16%

Male

FemaleMale

FemaleMale

FemaleMale

Female% receiving variable pay

89%

88%

% receiving variable pay

91%

93%

% receiving variable pay

95%

96%

% receiving variable pay

91%

84%

% in each pay quartile

Male

Female% in each pay quartile

Male

Female% in each pay quartile

Male

Female% in each pay quartile

Male

FemaleUpper quartile

70%

30%

Upper quartile

71%

29%

Upper quartile

85%

15%

Upper quartile

71%

29%

Upper mid quartile

79%

21%

Upper mid quartile

65%

35%

Upper mid quartile

80%

20%

Upper mid quartile

71%

29%

Lower mid quartile

71%

29%

Lower mid quartile

64%

36%

Lower mid quartile

79%

21%

Lower mid quartile

65%

35%

Lower quartile

56%

44%

Lower quartile

56%

44%

Lower quartile

59%

41%

Lower quartile

55%

45%

Male

FemaleMale

FemaleMale

FemaleMale

Female

589

277

295

173

405

137

1,316

713

Headcount

12.

Headcount

Headcount

Headcount

LSEG Pay Equity Report 2022

LSEG Employment Services Limited