Closing gender pay gap
Nokia (NOK) will raise the pay for some of its female workers to address its gender pay gap, Bloomberg reported. The company will allocate a special budget to bridge its gender pay gap. With over 100,000 employees worldwide, Nokia expects to invest a meaningful amount to address the gender pay gap issue. Google (GOOGL) spent $9.7 million to eliminate its gender pay gap in 2018 after it discovered that it was paying some of its male workers less than their female counterparts in certain positions.
In Britain, where companies with more than 250 employees are required to disclose their gender pay gap, an audit found that Nokia’s median gender pay gap stood at 21.1%. Dell Technologies (DELL) and Vodafone (VOD) discovered gender pay gaps of 19.2% and 19.3% in their UK workforce of 2018, according to a report by the Register. Facebook (FB), IBM (IBM), and Microsoft (MSFT) disclosed gender pay gaps of 11.9%, 11.7%, and 7.8% in their UK 2018 workforces, respectively.
Nokia sitting on $7.2 billion cash reserve
Nokia has been busy raising funds for its 5G research work, including taking loans from some European banks. With that in mind, investors may wonder whether setting aside some funds to address the gender pay gap would starve some of the company’s programs of cash. But Nokia doesn’t seem to be in funding shortage danger. The company finished the first quarter with $7.2 billion in cash reserves, and it doesn’t expect its budget for addressing the gender pay gap to be material.