We strive to provide consistent and fair compensation based on legitimate drivers of pay (such as job level, geographic location and performance ratings), not race or gender or any other protected characteristic. There are many ways to evaluate pay across different employee groups, and the way we do this at PepsiCo is by focusing on pay equity. Achieving and sustaining pay equity is a key performance metric for our sustainability agenda and supports our Racial Equality Journey by helping our company attract and retain talent.
To the World:
Ensuring pay equity is a necessary step to embedding racial and gender equity in the workplace and beyond.
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.
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.
2Blacks, Hispanics and Asians.
We will continue to bring our pep+ agenda to life, looking not only at pay equity but supporting all of our diversity, equity and inclusion ambitions and helping attract and retain talent at PepsiCo.
January 8, 2024