The Board undertake a review and report to shareholders by December 2019, omitting proprietary information, on compensation practices, policies and strategies addressing any current or historic gender pay gap between female and male employees within operations of the Toronto Dominion Bank and subsidiaries.
The gender pay gap is defined as the difference between male and female median earnings expressed as a percentage of male earnings.
The gender pay gap contributes to women’s poverty, acts as a barrier to women’s full economic participation and reduces global economic growth.
The Organization for Economic Co-operation and Development reports that addressing gender pay equity can increase economic growth, reduce poverty, enhance societal well-being, and help ensure sustainable development.
Statistics Canada estimates women earn 75 cents for every dollar earned by men. This gap widens for women who are indigenous, living with a disability, racialized, or newcomers.
The Ontario Equal Pay Coalition has found on average it takes women 15.5 months to earn what a man earns in 12.
The World Economic Forum estimates that, if pay equity gap trends continue, it will take 217 years to close the economic gender gap worldwide.
In 2018, TD’s United Kingdom operations reported an overall mean hourly pay gap of 43.4% and a median hourly pay gap of 47.9% for female employees. Women accounted for 51% of TD’s UK operations lowest pay quartile and only 14% of the highest pay quartile. The United Kingdom identified finance as one of the three sectors with the highest gender pay gaps. At TD Canada, 57% of employees are women, while women account for 25% of the executive leadership team.
Women in Financial Services, a 2016 report by Oliver Wyman, a financial services management consulting group, found the financial services industry has the highest level of mid-career exit for women in comparison to other sectors. Female managers, senior managers, and executives in financial services are 20 -30 percent more likely to leave their employer than peers in other industries.
TD will likely be required to comply with Canada’s new pay equity legislation: Act to Establish a Proactive Pay Equity Regime within the Federal Public and Private Sectors. While the legislation does not explicitly require public reporting, transparent disclosure by TD on actions to address any gender pay gap, will support recruitment and retention of female employees while enhancing the bank’s reputation and brand as an equal employer. Transparency on the Gender Pay Gap would support TD’s impact on the UN Sustainable Development Goal 5: Gender Equality, Goal 8: Decent Work and Economic Growth, and Goal 10: Reduced Inequalities.