PROMOTING AN INCLUSIVE CULTURE GENDER PAY GAP REPORT 2020 Stanley Black & Decker UK Ltd StanleyBlack&Decker
Mean and median gender pay gap
Proportion of males and females in each quartile pay band
Mean and median gender bonus gap
Proportion of males and females receiving a bonus payment
The figures set out above have been calculated based on the instructions set out in the HMRC link https://www.gov.uk/guidance/gender-pay-gap-reporting-data-you-must-gather

Fair Compensation
Stanley Black & Decker is committed to a total compensation program that is competitive with practices in our industry to attract, retain and develop the best talent. Our objective is  to improve the link between our compensation programs and the overall success of the company by leveraging upon our values-based and numbers-driven culture. Reward Management is an important management tool designed to enhance business performance. It relates to all forms of return – direct and/or indirect, short term and long term, financial as well as non-financial – that employees receive as part of their employment relationship. Reward Management in a large multinational company should be a  motivational driver focusing on monetary rewards as well as employee recognition within the company. Three strategic dimensions of an organization need to be aligned with the company's strategy: Processes, People and Culture. Strategic Reward Management makes the link between processes, people and culture and translates the company's strategy into the positions and the rewards of the employees. Five main 'building stones' define a  solid Reward Management: Strategic Reward Total Reward Internal Equity Individual Differentiation External Market Competitiveness "Recruiting, retaining and nurturing the best talent is paramount to the achievement of our company's vision. We seek to provide fair compensation, reward performance and celebrate achievement while ensuring our people's goals, development and learning are aligned with the company's growth objectives and our Purpose and Values."
Equal Pay and Non-Discrimination
Stanley Black & Decker is committed to the principle of equal opportunities and equal treatment for all employees, regardless of sex, race, religion or religious practice, age, marital status or civil partnership, pregnancy/maternity, sexual orientation, gender reassignment or disability. These principles are actively applied to all business aspects of the company, including Compensation. We proactively promote Equal Pay System, diversity & inclusion  and take measures against the Gender Pay Gap. The Company has a clear policy of paying employees equally for the same or equivalent work, regardless of their sex (or any other characteristic set out above). As such, it: Carries out an annual audit during the annual merit process to identify gaps and to adjust to market value; . Evaluates position roles as necessary to ensure a fair structure 3
While our gender pay gap is currently broadly in line with the UK economy as a whole, it is a subject which the Company is not complacent about and it is committed to doing everything that it can to reduce the gap. The Company recognises that its scope to act is limited in  some areas, however director level and the senior management team are aware of this gap and committed to taking actions to reduce it. Below are some of the areas the Company will focus on over the next few years and some of the measures already in place to start to reduce the gender pay gap, which will need time to take effect before an impact is made.
Diversity, Equity & Inclusion
As part of its Diversity, Equity & Inclusion agenda, the company has many Women's Network Employee Resource Groups (ERGs) across business units and countries. The purpose of these networks is to provide women across the Organisation an environment where they are empowered to pursue career advancement opportunities, achieve leadership positions and have access to resources to support their professional development. This is strongly supported by the President, James Loree and is a key focus of the European Diversity and Inclusion Board. As part of this agenda, the following actions have been put in place: . Chief Diversity Officer has been appointed to lead our holistic diversity, equity and inclusion strategy. . A Diversity, Equity & Inclusion Director for Europe (EMEA ANZ) will be  appointed to tackle a more bespoke approach to Equality in the region A commitment to interviewing a diverse selection of candidates for every role, see below. . . The provision of the Gender Pay Gap reporting,  for better understanding across all European countries. The launch of the new Code of Business Ethics and Integrity@SBD, our global reporting . platform to anonymously report concerns in local language, online, by phone or via text messaging. . The roll-out of the Unconscious Bias training to all associates, with specific Manager and HR Training, to raise awareness and manage any internal unconscious bias which exists.
Recruitment and Selection
The Company is currently reviewing its recruitment procedures along with career development opportunities. The Company is particularly keen to attract and recruit more female technicians, project managers and sales representatives as well as female managers. The company aims to attract more females to its apprenticeship scheme by shifting from a traditional engineering background, which attracts more males to a more IT focused  skills set, which attracts a more diverse pool of apprentices. If we are successful in increasing the number of female apprentices within the business, this may initially have an adverse impact on our gender pay figures, given that apprentices attract low salaries, but in the longer term our ambition is to increase the proportion of female employees in the higher earning quartiles. 4

Recruitment and Selection (Cont'd)
Currently, encouraging females of any age or experience into the Industrial sector is a real challenge. In reviewing our recruitment procedures, the Company is reviewing how it sources candidates, using external agencies that attract a diverse range of candidates as well as using social media, and will continue to drive a practice of having diverse interview panels, with both male and female interviewers. It is important to demonstrate that there is a viable career path within the Industrial Sector irrespective of gender. However, this can be challenging, with few women in senior positions across the sector. The Company will also continue to explore working with Universities and Schools to raise the profile of the Industrial industry and what it has to offer to women. Stanley Black & Decker has rolled out training for Line Managers and Senior Managers on unconscious bias when recruiting and promoting employees into roles within the business. The Company is reviewing job descriptions and adjusting language used as positions become available to improve inclusivity. We are also including credible female candidates on recruitment shortlists wherever possible.
Target
The Company will also consider setting a year on year aspirational target for hiring and promoting females, whilst ensuring compliance with our obligations under the Equality Act 2010 around positive action. Reviewing family friendly and flexible working policies Stanley Black & Decker is committed to offering the opportunity to all employees regardless of role or seniority the opportunity to be considered for flexible working arrangements on application. The Company wants to offer the right working environment to allow all employees the opportunity to have a successful career regardless of working pattern. 5
Closing Notes None of these initiatives will, in themselves, remove the gender pay gap and the Company recognises it may be several years before some have any impact at all. In the meantime, Stanley Black & Decker is committed to reporting on an annual basis on . what it is doing to reduce the gender pay gap and the progress that the Company is making. We recognise there is a gap, which we are taking very seriously and are committed to reduce this over the next few years through the positive initiatives outlined above. Any further initiatives launched throughout the year will be reported in next year's report. .
Pay Gap Comparison to other Organisations
The vast majority of organisations have a gender pay gap. The median pay gap for the whole UK economy (according to the April 2020 Office for National Statistics (ONS) Annual Survey of Hours and Earnings (ASHE) figures) is 15.5%. For Stanley Black & Decker UK Ltd the median gender pay gap is 25.19%. Stanley Black & Decker UK Ltd faced very challenging economic conditions during 2020 due to the COVID pandemic which has impacted on some of the numbers being reported. This is primarily due to a proportion of the workforce being on furlough during this period. The economic climate also impacted on the number of positions that were recruited into the business, which limited our opportunity to increase our female talent pipeline for more senior and well-paid positions this year.
Corporate Office Stanley Black & Decker 1000 Stanley Drive New Britain, CT 06053 Phone: (860) 225-5111
Corporate Communications Shannon Lapierre Vice President, Communications & Public Relations Mobile: (860) 259-7669 E-Mail
UK Contact Pam Punia HR Business Partner Mobile: +44 (0) 7880 420089 7