BOSTON–(BUSINESS WIRE)–Of 51 companies examined in the “Racial and Gender Pay Scorecard” released today to mark Equal Pay Day, fewer than one in 10 — Mastercard, Starbucks, Pfizer, Citigroup, and Bank of New York Mellon – get an “A,” while over half (26) get an “F.”
The 4th edition of the Scorecard is being released today by the investment management firm Arjuna Capital and Proxy Impact. The grades are based on quantitative disclosures (versus qualitative assurances) by companies taking concrete steps to close racial and gender pay gaps. The 51 companies in the ranking have all been engaged by investors through the shareholder proposal process and asked to improve their public pay equity disclosures.
Natasha Lamb, managing partner, Arjuna Capital, said: “The world’s largest corporations are under intense pressure to close their racial and gender pay gaps in response to investor insistence, the #BLM and #MeToo movements, and increasing public policy and regulation. But despite a wave of corporate statements expressing solidarity with Black Americans and women, there are very few standout companies that actually provide an honest accounting of and commitment to closing racial and gender pay gaps.”
Michael Passoff, CEO, Proxy Impact, said: “Racial and gender pay gaps at some of the world’s largest corporations are an area of increased concern and focus. Pay discrepancies have raised reputational, regulatory, financial, and legal risks for companies. An increasing number of shareholders have asked companies to report on their analyses, policies, and goals to reduce any racial and gender pay gaps. The global Coronavirus pandemic has only exacerbated racial and gender pay gaps and underlined the need for action.”
Key findings of the report include:
- Some of the biggest names in corporate America earned an “F” grade, including Goldman Sachs, Colgate, AT&T, McDonalds, Walmart, and Verizon.
- Nine companies’ scores deteriorated year-over-year, including Amazon, Wells Fargo, Intel, Google, Microsoft, Verizon, Expedia, Starbucks, and Arthur J. Gallagher. Twenty-four companies improved their scores.
- Only 23 out of 51 companies disclose on racial pay gaps. And there is a noticeable difference in racial/gender pay disclosure by sector. For example, while two-thirds of financial companies have improved their scores from last year, only one-third of tech companies achieved such progress.
- Bank of New York Mellon and Pfizer earned an “A” grade this year, joining Mastercard, Starbucks, and Citigroup at the top of the list, due to commitments to best-practice disclosures.
- Eleven companies (in order of rank from best to worst) — Adobe, Nike, Progressive Insurance, American Express, Reinsurance Group, JP Morgan Chase, Apple, Cincinnati Financial, Bank of America, Wells Fargo, and Intel—garnered a “B” grade for their efforts to disclose and act on their racial and gender pay gaps.
- Many of the…