VF Corporation is a global leader in branded lifestyle apparel, footwear and accessories, engaging in the design, production, procurement, marketing, and distribution of branded products in the Americas, Europe, and Asia Pacific with approximately 50,000 employees worldwide. We are committed to creating a fair and diverse workforce wherever we do business.
Our UK Business
VF operates two distinct legal entities in the United Kingdom, each with over 250 employees. The detail in this report covers the gender pay data for both entities; VF Northern Europe Ltd. which is responsible for our UK Wholesale Business, as well as for providing centralized services to the Europe, Middle East & Africa (EMEA) region, and VF Northern Europe Services Ltd. which is responsible for our UK Retail Stores operation.
Our UK Gender pay report
Our UK Gender Pay Report is based on information as of the snapshot date of 5 April 2017. We have used the ACAS and GEO Guidance on Gender Pay Reporting to calculate the data we are required to report on for each separate entity. The mean and median gender pay gap is calculated based on the hourly rate of the payments received in the month of April, excluding overtime. The bonus gap considers pay received in the 12 months leading up to the snapshot date. The mean result is the average hourly rate of all male employees versus the average hourly rate of all female employees. The median result is the middle value of pay for men versus the middle value of pay for women. A positive figure would show where women received lower rates than men and a negative figure would show where women received higher rates than men.
As of the snapshot date, VF employed 1488 people in the United Kingdom. The employee gender breakdown by business is as follows:
Overall, VF had slightly more female employees in the UK than it did male employees.
The required reporting by legal entity is contained in the following pages.
VF Northern Europe Ltd.
VF Northern Europe Ltd. is the legal entity that operates our direct wholesale business in the UK, as well as provides centralized services across EMEA in Customer Service and Credit. It also provides HR and Finance services to both our legal entities in the UK.
Proportion of Employees in Each Pay Band Quartile
Gender Pay Gap
We saw a mean gender pay gap of 21.6% that was slightly higher than the UK average (National UK average was 17.4% as per the 2017 Annual Survey of Hours and Earnings, Office for National Statistics). The result was impacted by two key factors:
- Our legacy businesses have fewer women than men in our more senior roles, particularly the technical functions of IT & Finance, and in the higher paying direct sales groups.
- The recent relocation to the UK of our central Shared Services for Credit and Customer Service has led to an influx of younger employees, largely female, in lower-paying positions.
Bonus Pay Gap
The higher than 50% gender bonus pay gap was primarily driven by position-specific eligibility rules for variable pay as well as brand-based performance differentiation.
- Typically, only our more senior roles and direct sales positions are eligible for variable pay which, as previously mentioned, have more male employees than female.
- We saw significant performance-based incentive payout differences amongst our individual brands. Many of our brands, which typically have a higher proportion of female employees, underperformed, and thus paid lower bonuses.