Black employees at Lloyds earn a fifth less than their white peers, the bank has revealed.
The figures which were compiled in April, showed the median pay gap between black staff and their colleagues was 19.7%, while the bonus gap stood at 37.6%.
Lloyds is the first British bank to reveal its ethnicity pay gap. It blamed the discrepancy on the fact that Black staff "are disproportionately under-represented at senior levels."
Currently, Black staff make up 1.5% of Lloyds' total workforce and 0.6% of its senior management.
The bank's chief executive António Horta-Osório, said that its “not good enough” and that Lloyds would take “action to resolve the issue.
It has has vowed to increase the number of Black staff in senior roles to at least 3% by 2025 to bring it into line with the Black population in England and Wales.
Black, Asian and minority ethnic (BAME) workers account for 10.3% of all staff at the bank, and 7.3% of senior management at Lloyds.
Breaking down the figures by ethnic group, the pay difference is widest for Black employees with an overall mean average pay difference of 16.7% and a median average pay difference of 19.7%.
For Asian workers the mean average pay difference is 7.2% and a median pay difference of 15.7%.
For ethnic minority staff the mean average pay difference is -2.2% with an average median pay difference of -0.5%.
Meanwhile, the median pay gap between BAME staff and colleagues was 14.8%, while the bonus pay gap stood at 32.5%. For Asian workers, the median pay gap stood at 25.7% and the bonus pay gap at 34.2%.
Horta-Osório, who is due to step down from his role as chief exec next year, said: “Listening to our colleagues and looking at our data, we recognise that specific groups face difficult and often nuanced challenges in being themselves at work. Our Black colleagues remain significantly under-represented at all levels, accounting for just 1.5% of our total workforce and 0.6% of our senior management.”
“We want to be clear that we are an anti-racist organisation – one where all employees speak up, challenge, and act to take an active stance against racism. In doing so, our colleagues will help break down the barriers preventing people from meeting their full potential,” he added.
Commenting on the results, Lloyds Group sustainable business director, Fiona Cannon said that the figures serve as a “wake-up call” to do better.
Cannon said: “We know that creating true cultural and operational change within an organisation as big as Lloyds Banking Group will not happen overnight. We also recognise that we also have a responsibility to do all that we can to ensure the business community is representative of the UK as a whole, which is why we’re looking at how we can better support the Black business community.
“The Black Business Advisory Committee will provide us with honest, direct feedback and direction on the steps we can take to address the challenges faced by the Black business community. With these insights, and working together with our partners, we stand ready to support Black-owned businesses.
“As we head into 2021 I have a real sense of optimism that we have momentum behind us, we have the plans and processes in place, and perhaps most importantly the unwavering support of our colleagues to get this right.”
Alongside the publication of its first Ethnicity Pay Gap Report as part of its part of its Race Action Plan, Lloyds launched a black business advisory committee.
It will be led by former cabinet office adviser and social entrepreneur Claudine Reid MBE to investigate the barriers to growth for the black business community.
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