UK Gender Pay
Gap Report 2018

CENTURYLINK DEMOGRAPHIC
male 82.3%

Fostering a talented, diverse
team of employees working
together towards a commonpurpose
iscrucial
toenhancing the customer andemployee experience andcreating the world's bestenterprise network.

female 17.7%

FORMER LEVEL 3 DEMOGRAPHIC
male 72.9%

female 27.1%

UK TECHNOLOGY SECTOR*
male 83%

We believe that everybody shouldhave the same opportunities,
regardless of gender.

female 17%

Historically, females have been underrepresented in the technology industry and hold disproportionately fewer techrelated jobs throughout the world. Recent studies estimate that only 17% of employees in the UK technology sector are female.
*Source: "Diversity in IT 2017" - BCS, The Chartered Institute for ITCenturyLink Proportion of employees receiving a bonus

Former Level 3 Proportion of employees receiving a bonus

101%

121%

90%

94%

MaleFemale

MaleFemale

All employees have equal rights to a bonus element to encourage retention and delivery of an excellent customer experience. CenturyLink
Limited pay-out rates are more than 100 percent due to female employees being on maternity leave and there being a significant numberof leavers in March. Both of these populations received bonuses in March, but not pay in the reference month of April.

Our companies have grown from the historically male-dominated infrastructure technology
sector, invariably leading to more males in the upper pay echelons. We know, however,that we pay near comparable rates for comparable work to both genders within the actualquartiles, which is an encouraging statistic.
This year, we have seen a small increase in male to female ratio, due in part to the senior
restructuring that occurred in the merging of CenturyLink and Level 3. We are currently working toimprove these ratios through policy updates, programs to promote diversity and education and research.
CenturyLink Gender Pay and Bonus Gaps

Level 3 Gender Pay and Bonus Gaps

MeanMedian

Pay Gap

13.68%

15.37%

Bonus Gap

5.50%

60.84%

MeanMedian

Pay Gap

23.69%

21.43%

Bonus Gap

42.88%

38.61%

We saw slight improvements in three of the four figures thisyear. Gaps in Mean Bonus, Median Pay and Median Bonus
improved, while the Mean Pay gap widened slightly. The Median
Pay gap can be attributed to the fact that, out of the top 30
earners, only three are female. This is a reflection of how many men
versus women we have in the overall population and the senior
restructuring that occurred last year.

Our Mean Pay and Median Bonus gaps have widened
slightly from 11.07% and 55.40%, respectively, from last year, while
our Mean Bonus and Median Pay gaps have improved significantly,
falling from 19.85% and 18.90%, respectively. Both higher figures
are a direct result of how many men versus women we haveand the senior roles men occupy – which lend themselves tohigher basic pay and bonuses.
The changes are areflection of the senior restructuring that occurred last year.

Our focus will continue to be on the hiring and progression of talent at all levels, however, this presents
its own complexities. In fact, taking on a larger percentage of women as new recruits at entry-level salaries
skews female quartile results and pushes the pay gap up temporarily. Yet, we take the long-term view thatencouraging more women into technology is the right thing to do in order to create the more balanced andequal employee-base we strive towards.
Pay Quartiles
9.09%

10.34%
GAP-21.57%

Male

GAP
2.37%

UPPER

Pay Quartiles

89.66%

GAP-0.67%

73.86%

74.71%

LOWER MIDDLE

LOWER

Based on 988 employees across the Quartiles
20.16%

GAP-1.84%

42.69%

31.5%
GAP
1.87%

86.43%

Female25.29%
GAP-1.27%

UPPER MIDDLE

14.17%

Male

26.14%

90.91%

FemaleLevel 3

Based on 350 employees across the Quartiles

GAP
0.15%

79.84%

GAP
0.85%

68.5%

57.71%

UPPERUPPER MIDDLE
LOWER MIDDLE
LOWER
To demonstrate that we have a relatively good balance between males and females, the pay differentials are represented in the centerof the graphs above. We aim to recruit and pay equally for equal roles, though the proportion varies due to female representation being
less in certain quartiles. Our compensation philosophy is designed to provide opportunities for career advancement to ensure equity forsimilar responsibilities.

How we seek to close the gender pay gap
Continue our joint commitment to level the internal playing field.
FemaleCareerProgression

Current programs which aim to increase female career progression: career-nurturing
Employee Resource Groups, e.g. Women Empowered, re-assessing org design toensure opportunities for females to progress internally.

Enhanced
GenderDiversity

Initiatives in place to enhance gender diversity by attracting new female talent into technology.
Partnerships with new candidate providers that specialize in working with parents returning towork, attending technical schools and universities to attract diverse talent, particularly for ourapprenticeship programs.

FamilyFriendlyEnhancements

Employees can value other company benefits over pay rises, hence we aim to offer a wide
range of benefits. These include enhancements to our Family Friendly provisions for bothgenders, with more paid leave and a projected greater rate of employees returning to work
after the leave.

Develop new initiatives and strengthen our resolve further.
Increasing
FemaleRepresentation

Increasing the female representation on our job vacancy shortlists and training for absoluteobjectivity in the selection process by launching a formal, competency-based interview process.

DiversityandInclusion

In 2018, we hired a dedicated Diversity and Inclusion Program manager with global
responsibilities and who will be further developing our strategy for local hiring practices.

Career
Progression
Framework

Enabling a robust career progression framework to retain talent across the business andpromote from within, whilst continuing to review and benchmark our Family Friendly andFlexible Working approaches