8. Additional specifications for the submission of the gender pay gap in Annex V

Investment firms that are participating in the gender pay gap benchmarking exercise should calculate the gender pay gap on their individual basis, considering all their staff, including staff working in branches in the same Member State, that are predominantly active in the Member State where the investment firm is established. Staff located predominantly in branches in another Member State or in a third country should not be included in the calculation.

Investment firms should establish a list of all staff and determine which staff should be included in the gender pay gap calculation, in line with the following criteria:

• a. The gender pay gap should be calculated for the staff that are staff at the end of the financial year, i.e. staff who have left the investment firm during the financial year are not considered in this exercise.
• b. Staff who receive less than their regular total annual remuneration because they were at the end of the financial year on any form of parental leave, long-term sick leave or long-

15 term special leave should be excluded from the exercise; long-term leave should be understood as leave of at least a consecutive time period of three months.

• c. Staff who have been recruited during the last three months of the financial year should not be taken into account in this exercise.
• d. Members of the management body in the management function should be treated as staff and identified staff.
• e. Members of the management body in the supervisory function should not be included in the calculation, unless they are employee representatives.
• f. Members of the management body in the supervisory function that are employee representatives should be taken into account in the calculation as staff and should only be taken into account in the calculation for identified staff when they are identified staff based on the function they have as a staff member.

The gender pay gap should be calculated as the difference between the average remuneration of men and women expressed as a percentage of the average remuneration of men. Investment firms should use for the calculation the annual gross remuneration of staff on a full-time equivalent basis. In accordance with the EBA Guidelines on sound remuneration policies, investment firms should consider the total remuneration awarded and also on a best effort basis the working time arrangements, annual leave periods and other financial and non-financial benefits when calculating the gender pay gap, taking into account the provisions of the following paragraph.

For each staff member that should be included in the gender pay gap calculation in accordance with paragraph 40, the investment firm should establish their total gross annual remuneration as the sum of fixed and variable remuneration considering the following:

• a. Non-monetary benefits (e.g. company car, interest-free loans, free company kindergarten, etc.) should be taken into account at their taxed monetary equivalent.
• b. Regular payments into the pension system and health insurance for all staff should not be considered. Discretionary pension benefits should be considered.
• c. The full variable remuneration awarded for all performance periods that ended during the financial year on which the calculation is based should be used, even if they concern performance periods longer than one year.
• d. Guaranteed variable remuneration (sign-on bonus) and severance payments (e.g. where the contract of staff has not yet ended at the end of the financial year) should not be taken into account in the calculation.
• e. For staff who have been working part-time, including for parts of the financial year, or have not been employed for the full financial year or have been on other forms of leave during parts of the year (e.g. unpaid or parental leave), the full annual amount of variable and fixed remuneration should be established on a best effort basis that the staff would have

16 received if they had been paid for the whole financial year on a full-time basis. Investment firms might calculate the amounts by extrapolating the remuneration, e.g. awarded for part-time employment, to the total annual gross remuneration on a full-time annual basis (e.g. the remuneration of staff working on a 50% part-time contract would be multiplied by a factor of 2 to arrive at the annual full-time remuneration).

Investment firms should calculate the gender pay gap for all staff (including the identified staff, identified on an individual basis) and separately for their identified staff. Investment firms should, in accordance with national law and the GDPR, make every reasonable effort to determine the gender of its staff. Investment firms may omit staff members whose gender cannot be acertained.

Investment firms that have 250 or more staff should calculate the gender pay gap for each quartile of their total remuneration and in total. Investment firms with fewer than 250 staff should only submit the gender pay gap based on the total figures for all staff. Investment firms that have 250 or more identified staff should calculate the gender pay gap for each quartile of their total remuneration and in total. Investment firms with fewer than 250 identified staff should only submit the gender pay gap based on the total figures for identified staff.

Investment firms should calculate the gender pay gap in terms of the representation of each gender as a percentage of male and female staff based on the number of all staff and all identified staff respectively – where applicable under paragraph 45, per quartile – whereby the percentages of the male and female representation together should result, where applicable, in 100.00% for each quartile calculated and for the total figures for all staff and for identified staff.

The gender pay gap based on gross remuneration should be expressed as the difference between the remuneration levels of male and female staff as the:

• a. difference between the mean remuneration of men and the mean remuneration of women, expressed as a percentage of the mean remuneration of men; and
• b. difference between the median remuneration of men and the median remuneration of women, expressed as a percentage of the median remuneration of men.⁶

Investment firms should comply with the following instructions in preparing the calculation:

• a. The remuneration of staff members (irrespective of their gender) should be arranged by the amount beginning with the lowest amount. Each amount of remuneration for a staff member should be allocated to the male or female gender and it should be recorded whether or not the staff member is identified staff.
• b. Staff members of a gender different from the male or female gender should be allocated to the gender they identify with or, if this is unknown or if it is different from the male or female gender, these staff members should be allocated to the male or female gender that in total has the lower number of staff members.

6 Gender pay pap in percent = (average remuneration of men – average remuneration of women)*100/ average remuneration of men

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• c. The established list of staff should, where applicable under paragraph 45, be separated into quartiles.
• d. The median and mean of the remuneration for all male and female staff, and separately for male and female identified staff should be calculated – in total and, where applicable under paragraph 45, for each quartile.

All figures should be expressed as percentages with two decimal places (e.g. ‘17.23%’ or ‘ - 17.23%’ in the case of a negative value). Where the gender pay gap for one category cannot be calculated, as there are only female staff members, the data point in Annex V should be assigned the value ‘N/A’ ; where there are only male staff members the result should show ‘100.00%’.