Gender Pay Gap Report 2020

Foxtons Limited

Gender Pay Gap Report 2020 1

2020 SummaryThis report covers the 2020/21 reporting cycle, the deadline for which is 4 April 2021, and refers to a snapshot date of 5 April 2020.

This year’s report was impacted by Covid-19, with the Spring national lockdown forcing the closure of our branches and head office for 10 weeks during 2020. At the outset of the pandemic we reacted swiftly to protect our employees and customers by following all Government guidelines and also utilised the Coronavirus Job Retention Scheme (CJRS) to protect jobs. As of 5 April 2020 snapshot date, approximately 750 Foxtons employees were on furloughed leave under the CJRS, which equated to almost 70% of the workforce. When the property market reopened in the summer most of our colleagues were taken off furlough in July and the business returned to full capacity by the end of September with no use of the CJRS since.

Under the Government’s gender pay gap guidance, employees on furloughed leave under the CJRS (and receiving less than full pay), are excluded from the statutory mean, median and gender split pay gap calculations. This has impacted the statutory results of this year’s gender pay gap report because furloughed employees were overall more junior and there are a higher proportion of men in the two higher income quartiles. Where relevant, the Company has provided adjusted metrics alongside the statutory metrics to aid comparability against the prior period.

Gender Pay Gap Report 2020 2

Foxtons approach to gender pay gapFoxtons is built on the unmatched expertise of our people and the exceptional service they deliver, so it is vital to us that everyone in the business feels empowered and able to reach their full potential.

We are therefore proud to report that in 2020 we made further progress toward achieving greater pay parity within our business, as a result of our ongoing commitment to eradicating the pay gap altogether. However, as we said last year, success lies in a long-term view and while we can see the beginnings of change, we’ve yet to see the full impact of our various initiatives and efforts.

We are passionate about continuing to build and invest in a workforce that truly represents the diversity of our clients and customers, and are pleased that, as in previous years, the gender split of all employees within Foxtons is close to 50%.

Our recruitment policies, salary and variable pay structures are designed to be gender neutral. Our remuneration principles are to attract, retain and continue to motivate talented employees while aligning remuneration with the achievement of our strategic objectives. Over 85% of our workforce benefits from variable pay which is linked to the Group’s performance in the form of commission schemes or annual cash bonuses.

Our commission schemes are designed to be transparent, with the level of pay out solely dependent on the performance of each employee. For the purposes of our gender pay gap reporting, “bonus pay” incorporates both commission schemes and annual bonus schemes.

MALE

53%FEMALE

47%

Workforce gender balance1

1 As at 31 December 2020

Gender Pay Gap Report 2020 3

2020/21 reporting period metricsOn a statutory basis, our mean hourly pay gap has increased to 37.2% (2019: 31.3%) primarily due to the impact of the CJRS usage on the statutory metric. During the 10-week lockdown it was primarily Foxtons’ senior employees who kept working as part of the skeleton team while more junior employees were furloughed. There are more senior males and more junior females in the business, as has been raised in previous gender pay gap reports, which resulted in the increased hourly pay gap on a statutory basis. The statutory median hourly pay gap for those employees who were working during the lockdown was 21.0%.

On an adjusted basis, which includes the furloughed employees, our adjusted mean hourly pay gap increased marginally to 33.2% (2019: 31.3%) whilst our adjusted median hourly pay gap decreased to 18.2% (2019: 22.4%).

Looking at the gender split for different quartile pay bands, the most progress towards a 50% split has been made in the two middle quartile pay bands. On an adjusted basis, the proportion of female employees in the lower middle quartile pay band has reduced to 52.9% (2019: 56.2%) and in the upper middle quartile pay band the proportion of females has increased to 46.6% (2019: 41.9%).

For the Company as a whole, this year we have seen a slight decrease in the number of women who received bonus payments from 66.5% to 63.2%. However, the mean bonus pay gap has

improved having reduced to 35.2% (2019: 36.3%) and the median bonus pay gap has remained stable at 59.0%.

When looking at employees who receive variable pay under commission schemes, excluding senior management, the mean bonus pay gap reduces to 19.2% (from 35.2% for the Company as a whole) and the median bonus pay gap reduces to 31.5% (from 59.0% for the Company as a whole).

Our commission schemes are gender neutral, and therefore the reason for the existence of a bonus pay gap is solely attributable to the difference in sales performance between individuals. The higher level of commission earned by men is reflective of a longer average tenure and associated experience which leads to higher average performance levels. We expect this to continue to balance over time.

The analysis highlights that while steps have been taken to improve female representation at senior management level, it remains an issue that is contributing to the overall gender pay gap.

Looking more broadly, our ongoing strategy of hiring, retaining and promoting more women remains on track. We believe steady progress, whereby we take the time to embed new initiatives and practices into our culture, will achieve greater long-term success in reducing the pay gap.

Sarah MasonChief People Officer

Gender Pay Gap Report 2020 4

Continued progress to close the gapFoxtons continues to make steady progress in closing the gender pay gap. We have reviewed our strategy and a number of new initiatives have resulted from that. Covid-19 has delayed some of those plans but the Company’s’ commitment to gender equality is as strong as ever.

One initiative that has grown from strength to strength is the Employee Engagement Committee. Prior to the first national lockdown, the Committee members met to discuss fair and inclusive recruitment practices including candidate attraction, selection and assessment. Since then, further meetings have taken place to address the gender pay gap and employee engagement (following our most recent employee engagement survey). Not only did the latter highlight that engagement amongst women remains strong (well above the “national norm”), but it also identified an opportunity to revamp and relaunch our Women@Foxtons community, which we plan to do in the coming months. This is with the intention of refocusing the purpose of the network with a need for measurable outcomes.

In addition to the Women@Foxtons network, we also recently partnered with the AllBright club, which is a women’s network with the aim of empowering professional women to realise their potential across all stages of their career. We gave all our female managers access to the AllBright digital platform, which provides opportunities to learn and connect through digital content, virtual events and networking.

The introduction of a new talent management process is now well underway with the successful launch of a new digital review platform, Open Blend. This has revolutionised the way in which reviews are conducted at Foxtons, creating aligned objectives across the business which will pave the way for clear and transparent promotion criteria. It has also given the review process an extra dimension by giving managers the tools to discuss our employees overall wellbeing.

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Continued progress to close the gapA milestone that recognises the hard work and progress made over the last few years is Foxtons recent success at the Business Culture Awards 2020. Not only was Foxtons the winner of the Diversity and Inclusion category, but also Silver Overall Winner and Highly Commended in the category for Medium Organisation. These awards are testament to the Diversity & Inclusion networks we have set up, including Women@Foxtons.

Finally, as previously highlighted, the current pandemic has created a multitude of challenges for Foxtons and its employees,

with working parents being particularly affected. As of 5 April 2020, many employees were tasked with homeworking whilst also looking after their children due to school closures. For this reason, the Company did what it could to support its working parents, including many female employees. This included utilising the CJRS, offering periods of paid and unpaid leave at short notice and flexible working patterns. Given the ongoing nature of the pandemic, the Company continues to review how it can best support impacted employees.

Business Culture Awards 2020The Business Culture Awards attract submissions from a number of well-known business. Other finalists in 2020 included Sainsbury’s, Lloyds Banking Group, Barclays, Volkswagen Group, TSB, DP Group, Ministry of Defence, Tata Consultancy Services, Very and Cognizant.

We a delighted to report that this year, Foxtons commitment to diversity & inclusion was recognised by the Business Culture Awards 2020 including: Winner of the Diversity and Inclusion category; Highly Commended in the category for Medium Organisation and Silver Overall Winner.

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Mean and median pay gap

Gender split pay quartiles

1 Employees on furlough leave under the CJRS are excluded from the statutory calculations. The adjusted metrics include furloughed employees which provides a better comparison to the prior period since the entire workforce is captured as at 5 April 2020.

2019 Median 22.4%2019 Mean 31.3%

Adjusted2020 Median 1 18.2%

Adjusted2020 Mean 1 33.2%

2020 Median 21.0%2020 Mean 37.2%

2020 2020 2020 2020

2020 adjusted 2 2020 adjusted 2 2020 adjusted 2 2020 adjusted 2

2019: Female: 54.1% Male: 45.9% 2019: Female: 56.2% Male: 43.8% 2019: Female: 41.9% Male: 58.1% 2019: Female: 33.9% Male: 66.1%

50.0% 50.0% 36.8%63.2% 73.7%

26.3%

82.9%

17.1%

55.0% 45.0% 52.9% 47.1% 46.6% 53.4%71.9%

28.1%

Upper quartilepay band

Upper middle quartilepay band

Lower middle quartilepay band

Lower quartilepay band

Hourly pay difference between male and female employees

Female

Male

Male

Female

Statutory and adjusted disclosures

2 Employees on furlough leave under the CJRS are excluded from the statutory calculations. The adjusted metrics include furloughed employees which provides a better comparison to the prior period since the entire workforce is captured as at 5 April 2020.

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I can confirm the information and data contained in this report is accurate as of the snapshot date 5 April 2020.

Nic BuddenChief Executive Officer

Bonus pay differential 3

3 Bonus pay includes all variable elements of pay, including commission and annual cash bonus.

Bonus pay difference between male and female employees

Percentage of male and female employees who received a bonus

Statutory and adjusted disclosures

2020 Median2020 Mean 35.2% 59.0%

2019 Median2019 Mean 59.0%36.3%

2020 2019

Male

Female

Male

Female

75.7%

63.2%

79.1%

66.5%