7. Specifications for the calculation of the gender pay gap

Competent authorities should collect data on the gender pay gap from institutions and investment firms on an individual basis expressed as percentages of the difference between the average pay

15 of female and male members of the management body and the difference between non-binary and male members of the management body, based on the mean and the median remuneration of executive directors, non-executive directors and employee representatives.

To calculate the gender pay gap, institutions and investment firms should determine the total gross annual remuneration as the sum of fixed and variable remuneration before tax, considering the following:

• a. The full variable remuneration awarded for all performance periods that ended during the financial year should be used. This should include variable remuneration based on non-revolving multiannual performance periods. Amounts paid out in the financial year (e.g. on a pro rata basis) that have been awarded in preceding financial years should not be taken into account.
• b. Guaranteed variable remuneration (e.g. sign-on bonus), remuneration packages awarded for the buy out from previous contracts 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.
• c. Non-monetary benefits (e.g. company car, interest-free loans, free company kindergarten etc.) should be taken into account at their taxed monetary equivalent.
• d. Regular payments into the pension system and health insurance for all staff should not be considered. Discretionary pension benefits should be considered.
• e. Fees for the participation in meetings of the management body should be taken into account, limited to members of the management body in the supervisory function where they also receive elements listed under points (a) to (d) of this paragraph. Where no other payments are made paragraph 33 applies. Participation fees for the participation in committees of the management body should not be taken into account.

Where non-executive directors or employee representatives receive remuneration only for their function in the form of a fixed daily participation fee, the amount to be considered for the calculation of the gender pay gap should be the participation fee for 1 day, independent of the number of days that have been remunerated during the financial year, instead of calculating the remuneration as specified in paragraph 32.

For employee representatives only the amounts awarded for their function as member of the management body should be considered.

Where a member of the management body was remunerated only for a part of the financial year, the remuneration received should be scaled up to the amount that would have been the total gross annual remuneration, if that member had been remunerated for the complete year. The same should apply for members that work part time.

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Members who were no longer a member of the management body at the end of the financial year should not be included in the calculation and their remuneration should not be taken into account in the calculation.

Institutions and investment firms should comply with the following instructions when calculating the mean and median remuneration to be reported in Annex XI:

• a. Separately for executive directors, non-executive directors and employee representatives, each director ’ s remuneration should be allocated to the applicable gender.
• b. The remuneration of members separately for each gender should be arranged by the amount, beginning with the lowest amount.
• c. The median and mean of the remuneration for male, female and non-binary executive directors, non-executive directors and employee representatives should be calculated.

The mean should be calculated as the sum of the remuneration divided by the number of directors in the relevant category specified under paragraph 37(c).

The median to be calculated under paragraph 37(c) is the middle value of the distribution of remuneration values set out under paragraph 37(b). In the case of an even number of directors within a category, the median is the mean of the two middle numbers.

Institutions and investment firms should calculate for each of the categories provided in Annex XI the gender pay gap by calculating:

• a. The difference between the mean remuneration of men and women, divided by the mean remuneration of men.
• b. The difference between the median remuneration of men and women, divided by the median remuneration of men.
• c. The difference between the mean remuneration of men and non-binary members, divided by the mean remuneration of men.
• d. The difference between the median remuneration of men and non-binary members, divided by the median remuneration of men.

When the gender pay gap between male and female members or the pay gap between male and non-binary members cannot be calculated as the category does not contain both of the respective genders, institutions and investment firms should provide the value ‘n / a’ (not available) instead of calculating the percentage.

Where the remuneration for the reference data has not yet been approved, institutions and investment firms should report the gender pay gap on a best effort basis, taking into account the proposed variable remuneration.

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