Gender Pay Gap Report

Northrop Grumman UK Ltd. Gender Pay Gap Report

The value of diversity and inclusion lets genius thrive.

white male with glasses

A Message from Nick Chaffey

Chief Executive, UK, Europe & Middle East

We are committed to shaping our future with a diverse workforce, inclusive of women at all levels and are delighted to be able to demonstrate our ongoing progress towards this. The UK gender pay gap reporting regulations differ significantly from an equal pay analysis. Our gender and bonus pay gaps do not stem from paying men and women differently for the
same or equivalent work, instead the report highlights the difference between the average earnings of men and women, irrespective of role or seniority, bringing transparency with the aim of increasing gender balance.

In a year that created great challenges for our company and the world, we remain focused on delivering greater diversity and inclusion. Despite the impact on delivery of development and STEM outreach, we have continued to make good progress via alternative delivery channels to ensure we maintain momentum.

The effect of the coronavirus pandemic on the workforce has been widely
reported. Throughout this period, Northrop Grumman UK Ltd has not furloughed any employees, so our reporting numbers are unaffected.
Since our first 2017 report the mean pay gap has dropped, year on year, from 27.3% to 17.0% in 2020 and the proportion of women in our upper middle pay quartile has increased. We recognise that organizational change has impacted our results and with upcoming business transfers we predict that it may continue to be a driver in the years ahead. These factors mean that in the short term, our results may change either way, but in the longer term, we expect to see the gender pay gap continue to close. We are using our data to help us identify where further improvement needs to be made and we maintain our focus and commitment to drive continued change.

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

headshot of a white female

A Message from Kathy Warden

Chairman, Chief Executive Officer and President

We believe that creating a workforce and a workplace that values diversity and fosters inclusion is pivotal to promoting innovation and increasing productivity and profitability.

Our goal is to continually support and nurture all Northrop Grumman employees whose diverse backgrounds, characteristics and perspectives
are highly valued in supporting us across all the global communities we serve.

We are continuing our efforts to create a more diverse workforce and inclusive culture; require diversity in our supplier base; enforce our code of conduct, including policies against racism with business partners, and enable access to quality STEM education for all.

We are committed to leveraging our organisational diversity through teamwork, cross-functional collaboration and joint ventures to help us meet, and indeed exceed, our business goals and ensure our role as a leader in our industry an din the communities we operate.

We were recently recognized as one of the top 25 companies among the S&P 500 for our gender equality performance. I’m particularly proud of this recognition because it is based on more than the gender balance of employees — it also recognises our commitment to equitable pay and benefits, family care support, well-being programs and work-life flexibility. We are taking proactive steps to champion diversity, equity and inclusion, and we will continue doing so.

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 90,000 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.