Gender Pay Gap Report 2018

Foxtons Limited

Gender Pay Gap Report 2018 1

Our 2018 report Foxtons employs over 1,000 people across London and each one plays a crucial role in our success. Our mission is to deliver exceptional service and we couldn’t do this without the commitment and unmatched expertise of our people.

We feel strongly about the importance of having a workforce which represents the city we operate in. We hire from diverse backgrounds and we employ 54% men and 46% women across our business.

However, like many other companies, we have a gender pay gap.

For some time now we have been working hard to eradicate this gap, so we’re pleased to confirm that our hourly gap has reduced in both mean and median measures to 34.6% and 25.5% respectively in our second year of disclosure.1

But there is still work to be done.

We recognise that the key driver behind both our hourly and bonus gap is a higher proportion of male employees in senior roles. We also acknowledge that the introduction of commission-focused reward schemes for senior sales management roles, designed to boost employee retention across the business, has unfortunately widened the bonus gap when compared to the previous year. Therefore, we must do more to increase female representation at senior management and leadership level.

We take pride in the fact that every individual who joins Foxtons can progress through the business.

Our staff can see a clear career path within Foxtons which is underpinned by a fair and unbiased practice of promotion based on performance. However, we see more female staff taking career breaks. So we are examining how we can support our female staff when they choose to take a career break, when they are on a break and when they return to work at Foxtons. We acknowledge we need to do more in this area.

Foxtons is a meritocracy. Most of our employees work in sales or sales support roles and are paid based on performance, typically earning a combination of basic pay and commission (and commission is counted as a bonus in this report). Over 90% of our total bonus pot is paid to sales staff who are based in our estate agency branches, meaning the vast majority of our bonus payments are directly linked to performance. In fact, after senior management bonuses (comprising predominantly LTIPs, share options and annual bonuses), the next highest bonuses are in the form of commission paid to female Estate Agents.

When focusing on Sales and Sales Support roles (excluding senior management), which makes up 68% of our work force, our mean pay gap reduces to 22%. This gap is largely due to tenure, as men’s length of service within these roles is on average 13% longer.

We’re clear that our route to overcoming the pay gap is to retain and promote more women. Change won’t happen overnight, but our work is already well underway.

MALE

54%FEMALE

46%

Foxtons current workforce

1 As stated in Our Gender Pay Gap Report 2017 our previous mean hour pay difference was 36.2% and our median hourly pay difference was 29.4%.

Gender Pay Gap Report 2018 2

Closing our gender pay gapAs a key driver of greater gender pay parity, we are committed to attracting, retaining and promoting more women at Foxtons.

Over the past 12 months, we’ve made promising progress.

In July 2018 we welcomed Sarah Mason as our Chief People Officer, bringing female representation to the senior team and a wealth of HR knowledge and expertise to the business. Our Front Office Directors team now also has female representation following promotions of some of our top female sales talent. We have appointed a female Senior Director to oversee all our gender parity initiatives, reporting directly into the CEO. And we have also promoted one of our female staff to become a Managing Director of our Build To Rent department.

We hope to tell stories like this next year too, but we’re clear that success lies in a long-term view. Succession planning is key so we’re monitoring the leadership pipeline for gender balance and continuing to match high-performing female talent with the best opportunities.

The employee engagement survey, conducted by Willis Towers Watson and referenced in last year’s report, proved so valuable that we’ll run another in 2019. Using the benchmark data, we’ll measure how engaged our female staff are now to judge the success of recent initiatives, like our ever-growing Diversity & Inclusion networks.

Last year we talked about some gender orientated recruitment practices we’d initiated, and today these have

been embedded. Unconscious bias training for our senior managers to support our aim to recruit based on merit and potential not background or gender; having more female Foxtons representatives at our assessment centres champions female role models; and striving for an equal split of female and male candidates at recruitment sessions enables us to best portray the well-balanced workforce we have today.

In terms of progress on retaining great female talent, the enhanced family leave package and flexible work options have been well received. We’re also pleased that membership of the peer-to-peer female networking groups, Women@Foxtons, has grown since last year. The unconscious bias training for our senior management team has been successful and we intend to roll this out to all managers next.

In line with Financial Reporting Council (FRC) regulations on corporate governance, we have recently launched a Workforce Council. The committee is responsible for employee engagement and employee voice and 60% of its membership is women.

Sarah MasonChief People Officer

Gender Pay Gap Report 2018 3

Statutory disclosuresHourly pay difference between male and female employees

Gap reduced by 1.7 percentage points since 2017 Gap reduced by 3.9 percentage points since 2017

Median 25.5%Mean 34.6%

Lower quartile pay band Upper quartile pay bandUpper middle quartile pay bandLower middle quartile pay band

59.6%40.4%

53.8%46.2%

60.3%39.7%

69.3%30.7%

Female

Male

Bonus pay difference between male and female employees

Bonus pay difference between male and female employees

Gap increased by 9.6 percentage points since 2017 Gap increased by 39.5 percentage points since 2017

Median 64.9%Mean 31.9%

Percentage of men paid a bonus

Percentage of women paid a bonus

75.2% 62.5%

I can confirm the information and data contained in this report is accurate as of the snapshot date 5 April 2018.

Nic BuddenChief Executive Officer

Mean and median pay gap

Gender split pay quartiles

Bonus pay differential