Gender Pay Gap Report

Northrop Grumman UK Ltd. Gender Pay Gap Report

The value of diversity and inclusion lets genius thrive.

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A Message from Nick Chaffey

Chief Executive, UK, Europe & Middle East

Northrop Grumman is committed to fostering a diverse and inclusive culture. Diversity in the workforce is a key driver of business success, innovation and growth, and our mission is to recruit, retain and promote individuals of all backgrounds regardless of gender, race, age, disability status, sexual orientation, religion, or any other such characteristic.

We are confident that we pay men and women equally for work of equal value. We do have a gender pay gap within NGUKL, defined as the difference in the average pay and bonuses of all men and all women across the company, regardless of role or seniority. Since our first report in 2017 our mean pay gap has dropped to 10.5% in 2021, significantly lower than the overall UK gender pay gap of 15.4%

We are committed to progressing opportunities for women, particularly in STEM-related areas of science, technology, engineering and mathematics, and overcoming challenges presented by the global pandemic.

In this report, we discuss in some more detail the reasons for the gender pay gap and ways we are tackling the challenges to help enable significant and sustained improvement. This is a core goal of Northrop Grumman in the UK.

I confirm that NGUKL’s pay gap data has been collected and presented within this report in accordance with the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

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A Message from Kathy Warden

Chairman, Chief Executive Officer and President

I am proud of our company’s culture and our commitment to fostering diversity, equity and inclusion – where every person is valued for who they are and the unique perspectives they bring to our team. We believe that diversity at every level helps us to deliver strong and sustainable company performance, and we will continue to drive positive change in our company and beyond.

We continue to make great strides in ensuring our employees feel respected and know their voices matter.

In 2021, our UK team took significant steps toward reducing the gender pay gaps highlighted in their annual reports. Their efforts were successful in reducing the gap further year over year, but we realise there is more work required, and they detail a number of those efforts and initiatives in this year’s report.

At the enterprise level, I confirm that we are continuing our efforts to create a more diverse workforce and inclusive culture, enforcing our code of conduct (especially including race and gender equality matters), and enabling access to quality STEM education for all.

We were recognized as one of the top 25 companies among the S&P 500 for our gender equality performance, ranked on 19 gender criteria, including the gender balance of employees, senior management and board of directors, as well as policies that address areas like the pay gap and parental leave. The ranking highlights the proactive steps Northrop Grumman takes to create a more equal workforce and to champion diversity and inclusion.

About Us

Northrop Grumman solves the toughest problems in space, aeronautics, defense and cyberspace to meet the ever evolving needs of our customers worldwide. Our 95,000 employees are Defining Possible every day using science, technology and engineering to create and deliver advanced systems, products and services.

Northrop Grumman UK Ltd. (“NGUKL”), the subject of this report, is a key supplier of operationally strategic programmes in the defence, security, cyber, intelligence, information systems, and public safety communications markets, providing a range of capabilities and technologies in support of the Armed Forces, emergency services and wider government.

NGUKL had over 450 employees at 5 April 2020. Our workforce composition is predominately professional, with the majority of roles in science, technology, engineering and mathematics (STEM) occupations

The Gender Pay Gap

The UK gender pay gap differs significantly from equal pay. Equal pay is about paying women and men equally for equal work and we remain committed to this. The gender pay gap is about measuring the difference in average pay between men and women in all roles across the organisation. There are a number of factors that can drive differences in pay, such as job level, location and type of role.