Introduction
For the first time, employers in Ireland with at least 250 employees must report their gender pay gaps.

The Employment Equality Act 1998 (section 20A) (Gender Pay Gap Information) Regulations 2022 requires VMware International Unlimited Company to annually review and publish its gender pay gap information.

VMware welcomes this new legislation and increased transparency around gender diversity and are committed to taking the long-term action that is required to reduce our gender pay gaps.

Below, we have ser out our gender pay gap results for 2022, contributing factors to our pay gaps and measures we will take to help reduce these in the future.

Gender pay gaps versus equal pay
The gender pay gap shows the difference between the average (mean and median) earnings of men and women employees and is always expressed as a percentage of men employees' earnings. It is the output of a calculation that makes no allowances for differences in job role or seniority but aims to show demographic imbalance in a workforce. Equal pay on the other hand, requires men and women doing the same or similar work to be paid the same. Equal pay has long been a legal requirement in Ireland and is required across our global compensation practice.

VMware's findings for 2022

1. The difference between the mean hourly remuneration of men and women employees: 8.4%
2. The difference between the mean hourly remuneration of part-time men and women employees: -35.7%
3. The difference between the mean hourly remuneration of men and women employees on fixed-term employment contracts: 17.2%
4. The difference between the median hourly remuneration of men and women employees: 14.0%
5. The difference between the median hourly remuneration of part-time men and women employees: -25.6%
6. The difference between the median hourly remuneration of men and women employees on fixed-term employment contracts: 0.0%
7. The difference between the mean bonus remuneration of men and women employees: 8%
8. The difference between the median bonus remuneration of men and women employees: 16.3%
9. The % of all men and women employees who were paid a bonus: 92% and 94% respectively
10. The % of all men and women employees who received benefits in kind: 91% and 92% respectively
11. The % of all men and women employees who fall into each of the following remuneration quartile bands:
    • Lower quartile: 48% women; 52% men
    • Lower middle quartile: 41% women; 59% men
    • Upper middle quartile: 30% women; 70% men
    • Upper quartile: 32% women; 68% men

Identified Gender Pay Gaps
VMware has identified mean and median gender pay gaps in respect of hourly pay and bonus pay. Our analysis of the data suggests that the below factors have materially contributed to these pay gaps.

1. Job Levels:
   1. VMware's Individual Contributor level comprises most of the Ireland employee workforce and includes a broad range of roles from interns to senior technical staff. Only 23% of Ireland employees in the highest quartile of our Individual Contributor level roles are women, which is contributing to our overall pay gap in Ireland.
   2. There are more women employees than men employees in many of VMware's more senior or highly paid role levels, except Senior Director and Vice President levels where there are disproportionately more men employees. Usually this would result in a small or negative gender pay gap (i.e., a finding that women's average remuneration is higher than men's remuneration) but it doesn't in VMware's case because our Individual Contributor level comprises most of our roles in Ireland.
   3. We've assessed that our mean pay gaps are reduced in part due to having more women employees than men employees in our most senior level roles in Ireland. However, VMware acknowledges that there is still further progress to be made to increase representation of women employees across our leadership teams and notably in Ireland, across our Individual Contributor level where there are more women employees in lower paid roles within this broad level.
      
      
2. Job Departments:
   Our Customer Management job department in Ireland has disproportionately more men employees than women employees, whereas Business Planning, Finance and HR have more women employees. We also found underrepresentation of women employees in our Ireland Product Engineering department, which is a trend we still see across the Tech industry.

What measures is VMware taking to address its Gender Pay Gap?
The factors contributing to VMware's pay gaps in Ireland indicate that measures are needed to help increase representation of women across all levels and departments in our Ireland workforce. Below, we have set out details of measures that VMware is taking in Ireland to address its gender pay gaps.

1. VMware's goal to hire more women to improve representation of women employees in Ireland and globally

   To better champion women representation in our Ireland workforce, as well as globally, our aim is that that over 1 in 3 hires (37%) will identify as a woman. To help achieve this:

   1. all VMware leaders, including those in Ireland, at Senior Director level and above, have Diversity Equity and Inclusion ("DEI") goals as part of their management objectives which are linked to their bonus objectives. Some of these DEI goals are focused on increasing representation of women in VMware's hiring processes by using consistent, objective, inclusive and sex/gender-neutral candidate interview slates;
   2. all VMware global job requisitions have at least one candidate on the interview slate who identifies as a woman or the hiring manager will be required to engage in a review process with the relevant VP or above on why it was not possible to meet the candidate interview slate on their requisition. The VP or above is expected to use this review to coach their team member on the ways they can meet this candidate interview slate requirement on future requisitions;
   3. reports are run to see how many requisitions are in "Guided by Outcomes" ("GO") format, which entails a description of the performance outcomes, not the ideal characteristics or qualifications of a candidate;
   4. all interviewers are encouraged to go through the "GO" interview training and VMware's recruitment process follows the structured "GO" interview format, which aims to be less biased and more inclusive to encourage broader and more diverse representation in our future workforce; and
   5. VMware advertises many roles as being available on a flexible or remote working basis by default because research indicates that this increases the number of applications by women.
      
      
2. Our Power of Difference communities ("PODs") to address underrepresentation of women across VMware globally, including our Ireland workforce
   We recognise that giving people a discussion space, including for issues experienced by women in our Ireland workforce and globally, can help to attract women candidates in Ireland, enhance their employee experience, engagement, professional and personal growth and their retention. Our Women@VMware POD aims to encourage women hired by any VMware location, to discuss and share experiences and to provide ideas and suggestions on how VMware can continue promoting opportunity and experience for its women employees.
   
   
3. Our local initiatives in Ireland to address overall underrepresentation of women in our Ireland workforce
   In Ireland, our local women's Employee Resource Group initiatives aim to increase representation of women in our Ireland workforce, such as our return to work programme focusing on reskilling or upskilling women who have been out of the workforce for a period of time to help them transition back or start a career in Tech.
   
   
4. Increasing representation of women in Ireland's technology industry to address underrepresentation of women in our Ireland workforce
   We acknowledge that it could take time and commitment to increase representation of women in our Ireland workforce, to help reduce the pay gap. Accordingly, as part of our longer-term talent strategy in Ireland, VMware is taking measures at grassroots level to encourage women into Tech. For example, VMware has sponsored iWish for the past 8 years and continues to do so. This fantastic organisation is a community committed to showcasing the opportunity of STEM subjects for young women to encourage more young women to make STEM subject choices for higher education and beyond. VMware employees are regular speakers and volunteers for numerous iWish events and looks forward to continuing this brilliant partnership. VMware also looks forward to continuing with the Women in Tech and VMWomen programs.
   
   VMware will continue to actively support CoderDojo another fantastic organisation offering local programming hubs and classes in Cork for 5th and 6th class primary school age girls to help generate early interest and capability in coding amongst girls.
   
   VMware further promotes STEM subjects for women in Ireland with its annual competition for students in the local community who are studying STEM at 3rd level by offering a first and runner up prize for the best essay and interview on the theme of Tech as a "Force for Good".
   
   Additionally, in Ireland VMware has recently launched a pilot project on 9th December 2022 with two local schools. Six young women from these schools are being selected to build an application for the benefit of their local community over a period of 12 weeks with engagement and support from VMware's employees. The aim is to develop these young women's – and their peers – interest in STEM subjects, particularly in the field of technology engineering. The intent is to then scale this pilot project more widely, by providing a toolkit for teachers to run the project across schools in the local area.
   
   

Final thoughts
VMware is proud to be an organisation that is committed to the success of its people. Not only do we want to improve representation of women in VMware, across all areas of our business, but also to demonstrate that the technology industry is one where women can truly have a thriving and rewarding career.

VMware believes in transparency, which is why we welcome the obligation to publicly report on our gender pay gap in Ireland and believe that monitoring and reporting on the same will help drive our focus on measures needed to reduce such gaps. We acknowledge that there is more work for us to do to increase representation of women in our Ireland business, across a broader range of roles and levels and our adopted measures are intended to help achieve this within VMware, but also more broadly across our industry. We recognise that building a diverse and inclusive workforce is critical to our success and, while we continue to make positive progress, there is still much more to do.

Signed:
Aine Lyons,
Senior Vice President, Deputy General Counsel
On behalf of the board of VMware International Unlimited Company