Last week, Women in Retail Leadership Circle (WIRLC) acknowledged Equal Pay Day by recognizing how far we have to go:

  • In 2023, on average, women are earning 77 cents for every dollar earned by white men, the racial group with the highest pay across occupations.
  • That ratio decreases for women who aren’t white. The National Partnership for Women & Families estimates that Black, Latina, and Native American women earn 64 cents or less for every dollar earned by white men. The same data on LGBTQ+ Americans is either limited, or oftentimes, nonexistent.
  • There’s a gender gap in EVERY field, according to the Bureau of Labor Statistics.
  • In almost every state, women of color earn less than a living wage.

This week, I wanted to take a look at the retailers that are making strides to close the gender pay gap. Arjuna Capital and Proxy Impact released their 2023 racial and gender pay scorecard on Equal Pay Day, which examined 68 major U.S. companies and awarded 13 of those an “A” grade. Of those 13, four were retailers: Target, Lowe’s, Best Buy, and The Home Depot. Target received an “A+” for the first time in the scorecard’s six-year history.

What factors helped Target earn the top spot? The report showed that first, Target and a few other companies that got high scores — including Starbucks, Lowe’s, Best Buy, Home Depot, Chipotle, Mastercard, Visa, and Disney — are reporting both adjusted and unadjusted median global/U.S. racial and gender pay gap numbers.

Target, Starbucks and Chipotle also scored 100 percent or better equal pay on a median basis — the three companies reported that women employed there earn $1 for every $1 that men earn. Target also received points for fully disclosing its pay gap analysis methodology.

The report isn’t all good news. Twenty-five companies — over a third of the list — received an “F” rating.

“Racial and gender pay gaps at some of the world’s largest corporations are an area of increased concern and focus,” the report’s authors wrote. “Pay discrepancies have raised reputational, regulatory, financial, and legal risks for companies. Consequently, an increasing number of shareholders have asked companies to report on their analyses, policies, and goals to reduce any racial/gender pay gaps.”

The report authors recommend that shareholders and corporations analyze their current pay structures and disclose their racial and gender pay gaps, as well as the pay components used to determine the gap, like base salary, bonus and equity. They also recommend companies publicly commit to 100 percent pay equity, 100 percent global coverage of employee base, and annual disclosures.

“Closing the racial and gender pay gap is not just a question of fairness, it’s a question of good business,” the report authors wrote. Let me know if you agree.