Approach

Achieving and sustaining pay equity is a critical step to embedding racial and gender equity in the workplace and beyond. As part of our pep+ (PepsiCo Positive) ambition, we are working towards this goal by maintaining a robust, long-standing and comprehensive global pay equity process for managing pay programs that ensures pay equity across employee groups. Building on that history, we have increased the rigor of our pay equity review processes, which is managed and tracked centrally by PepsiCo’s Total Rewards and People Analytics teams. The teams work together to analyze demographic and geographic cohorts to evaluate pay equity.

Our pay equity ambitions are in line with the statement we made in 2016, when we signed the White House Equal Pay Pledge. As part of this pledge, we set a goal to implement a comprehensive, global annual review process to support pay equity for women. As a Fortune 50 company, we felt it was important to add our voice to this conversation and take a leadership position in regards to pay equity.

Progress

As of 2022, we had implemented this process in 72 countries that collectively make up more than 99% of our salaried employee population. Our results show that in this population, women and men are paid within 1%¹ of each other and in the U.S. people of color² are paid within 1%¹ of non-minorities, after controlling for legitimate drivers of pay such as job level, geographic location and performance ratings. This gives us confidence that our efforts to achieve pay equity are producing good results. Importantly, we are also gaining insights into how we can advance pay equity in markets in which we operate.