Pay Equity

Rio Tinto strives to create an inclusive culture where all people are heard, valued and respected.


Rio Tinto's Commitment to Pay Equity

We seek to provide competitive pay, delivered through fair and non-discriminatory pay practices and processes. We are committed to ensuring that employees with similar skills, knowledge, qualifications, experience and performance are paid equally for the same or comparable work. In 2020, we continued to evolve our remuneration to eradicate bias and otherwise enhance the transparency and robustness of our decision making.

Our pay equity statistics (i.e. “equal pay gap” and “gender pay gap”) are integral to our monitoring of employee pay; they guide pay decisions and investment during our annual remuneration review. The statistics are affected by gender representation across our organisation (we employ more men than women); we remain focused on improving female representation at all levels, across Rio Tinto.

  • Equal Pay Gap
  • Gender Pay Gap

Our equal pay gap measures the extent to which women and men, employed by our company in the same location and performing work of equal value receive the same pay. In 2020, the equal pay gap decreased marginally compared to 2019 and remains less than 2%*. The equal pay gap is the primary lens we use when assessing progress against our ambition to eradicate bias.

 

Gender pay is a measure of the difference between average earnings across the Group (excluding incentive pay), regardless of role, expressed as a percentage of men’s earnings. In 2020, our gender pay gap shifted to be more than 1%* in favour of women (in 2019, it was less than 1% in favour of men). While part of this positive shift is attributable to decisions made to reduce the gap, which is reflected in the slightly higher increase in average earnings for women this year, it is also a reflection of employee movements (attrition, recruitment and promotion) and the fact that more women are in higher-paying roles in our non-operational workforce.

Across the entire workforce, as the equal pay gap suggests, there is relatively little difference between the average pay of men and women. In 2021, we will expand our gender diversity targets beyond women in leadership to women at all levels. The dual challenge of increasing diversity and evolving our work environment will require significant and sustained effort across the organisation.

Both the equal pay gap and the Group-wide gender pay gap are measured and monitored on a voluntary basis by Rio Tinto, in parallel with country-specific mandatory reporting requirements. Under UK regulations, while none of our UK employing entities meet the minimum reporting threshold of 250 employees, details of the gender pay gap for the largest entity (Rio Tinto London Limited) have been voluntarily disclosed.

* Note: Based on full time equivalent, contractual base salary

 

UK-Specific “Gender Pay Gap” Disclosures

The methodology required by the UK regulations differs from Rio Tinto’s approach to assessing gender pay equity.

The UK methodology calculates the difference in average pay and bonuses between all male and female employees within an employing entity. It is expressed as a percentage of men’s earnings. This differs from Equal Pay which means that men and women in the same employment performing equal work must receive equal pay.

Rio Tinto is not obliged to publish the “gender pay gap” report for any of its UK employing entities for 2020, as none of these entities reached the minimum reporting threshold of 250 employees. However we have chosen to voluntarily publish figures for the largest employing entity in the UK, Rio Tinto London Limited, as set out below:

Rio Tinto London Limited Gender Pay Gap Metrics (UK Government Methodology)

GENDER PAY GAP DISCLOSABLE METRICS (SEE BELOW FOR DEFINITIONS)

RESULTS RTLL (April 2019)

RESULTS RTLL (April 2020)

Mean hourly gender pay gap1

52.5%

43.5%

Median hourly gender pay gap1

47.9%

33.7%

Mean bonus gender pay gap for the year2

79.7%

82%

Median bonus gender pay gap for year2

84.7%

79.7%

Proportion of males receiving a bonus payment

89%

100%

Proportion of females receiving a bonus payment

98%

92%

 

Notes:

1Indicates by how much women’s mean/median hourly rate is lower than men
2Indicates by how much women’s mean/median bonus is lower than men

 

AS AT APRIL 2019

AS AT APRIL 2020

PROPORTION OF MALES AND FEMALES IN EACH QUARTILE PAY BAND

MALES

FEMALES

MALES

FEMALES

Lower Pay Quartile

7%

93%

15%

85%

Lower Middle Pay Quartile

50%

50%

39%

61%

Upper Middle Pay Quartile

70%

30%

80%

20%

Upper Pay Quartile

80%

20%

68%

32%

 

Definitions used for UK disclosures in table above:

MEAN/MEDIAN GENDER PAY GAP

Difference between the mean / median hourly rate of pay paid to male and female employees (employees whose pay has been reduced as a result of leave and therefore are not "full-pay relevant" are excluded from the analysis). A positive value indicates that the males' hourly pay is higher than the one of females.

MEAN/MEDIAN BONUS GENDER PAY GAP

Difference between the mean / median bonus pay paid to male and female employees (employees not in receipt of a bonus are excluded from the analysis). A positive value indicates that the males' bonus is higher than the one of females.

PROP. MALES/FEMALES RECEIVING BONUS

Proportion of male / female employees who were paid a bonus

PROP. MALES/FEMALES IN EACH QUARTILE BAND

Proportion of male / female employees in four quartile bands, which are calculated by dividing the employee population into four equal parts

Commentary on Results for Rio Tinto London Limited

Gender pay gap calculations, including the UK pay gap methodology, are deeply influenced by the seniority of men and women in an organisation and industry.

Women continue to be under-represented in senior roles at Rio Tinto, and this is evident in Rio Tinto London Limited, where employees are primarily located in a small corporate office in London, which contains some of the most senior roles in the company. As female representation at senior levels is lower, this proportionally affects the size of the UK gender pay gap metrics. The approach to addressing this in the UK is the same as our global goals, including targets to increase the representation of women in senior management positions.

Hourly Pay Gap

The hourly pay gap is a reflection of the number of women in senior roles at Rio Tinto London Limited, as evidenced by the percentage of women in roles paid in the upper quartile or middle upper quartile.

It is worth noting that the reported level of Gender Pay Gap is not evident when there are equal numbers of men and women at a given level of seniority. For example, in middle management and middle professional roles, which are the most balanced in terms of gender representation in Rio Tinto London Limited, the mean Gender Pay Gap is 4.4% and the median pay gap is 10.3% in favour of males at 5 April 2020.

Bonus Gap

The ‘bonus’ primarily includes the value of short (STIP) and long term (LTIP) incentives.

Individual and business performance is used to determine the level of STIP awards. Rio Tinto drives consistency and fairness checks on individual performance as part of the performance review process. However, individuals reaching the same performance rating, receiving the same salary, and the same STIP opportunity, may not receive the same STIP cash award where the performance of their respective business units is different.

Consistency and fairness checks are also conducted annually on LTIP awards as part of the Annual Remuneration Review.

The ‘bonus’ gap is primarily driven by a higher representation of men in upper bands, which attract higher salaries, STIP and LTIP opportunities in the UK market.