Lowe’s discloses median and adjusted pay gap data, joining industry peers Home Depot, Target, and Starbucks.
BOSTON–(BUSINESS WIRE)–Lowe’s published median and statistically adjusted racial and gender pay gap data, in response to a majority vote by investors at the company’s annual meeting in May. The shareholder proposal, brought forth by investment management firm Arjuna Capital, requested a comprehensive report on “both median and adjusted pay gaps across race and gender.” After the proposal received a 58% shareholder vote in favor, the company fulfilled the request by publishing the data.
Lowe’s reports that in 2021, female associates’ median pay was approximately 97% of male associates’ median pay, and that minority associates’ median pay was approximately 99% of non-minority associates’ median pay. The company discloses that women and minorities earn 100% of comparable male and non-minority associates’ pay, when statistically adjusting for factors such as role and tenure.
“Lowe’s is really stepping up its efforts on racial and gender pay equity with a best-practice disclosure, joining industry peers like Home Depot,” said Natasha Lamb, a managing partner at Arjuna Capital. “Not only does Lowe’s have a lot to be proud of with this data, the company has created a mechanism to report and narrow pay gaps over time.”
Lowe’s disclosure follows a year-long engagement between Arjuna Capital and the company. Lowe’s has now disclosed what is considered “best practice” pay equity reporting. This includes disclosing both median and adjusted racial and gender pay gaps assessed on all forms of compensation (base, bonus, and equity), and committing to update pay gap disclosures annually. And while Lowe’s reports the disclosure is based on 92% of employees, this number should increase to nearly 100% after the sale of the company’s Canadian retail business is complete.
Arjuna filed the proposal on December 3, 2021, as Lowe’s had previously not disclosed any information around its internal racial and gender pay equity. Arjuna specifically asked Lowe’s to disclose its unadjusted median and adjusted pay gap data, both of which are necessary for a comprehensive disclosure. Median pay gaps assess how jobs and compensation are distributed by race and gender company wide. Meanwhile, statistically adjusted gaps only assess pay gaps for employees performing similar roles. Median pay data provides distinct value from statistically adjusted data as it shows, quite literally, how the company assigns value to its employees through the roles they inhabit and the pay they receive.
Since 2016, Arjuna has compelled racial and gender pay equity disclosures at 33 Fortune 500 companies, including leading U.S. finance, tech, and consumer firms. Lowe’s joins several other companies that have already committed to disclosing comprehensive racial and gender pay data, including Home Depot, Target, and Starbucks.
Arjuna Capital is a sustainable investment firm that works with accredited investors and institutions to invest their assets with a lens toward Environmental, Social, and Governance (ESG) risk and opportunity. Arjuna Capital has been recognized for using shareholder resolutions to promote racial and gender pay equity in the tech, banking, and consumer sectors. For more information, visit www.Arjuna-Capital.com.
Julia Frost, (978)866-0208 or firstname.lastname@example.org