PayPal CEO Dan Schulman On Closing The Pay Gap

Companies that are more
diverse perform better. I thought if we were gonna be
successful and build a great, enduring company, we had to have diversity
of thought, diversity of representation, throughout all levels of PayPal. And so, we’ve seen that you discovered, when
you set out to do the study, a $3 million delta your first year. Some people said, “Well, it’s $3 million,
maybe you can start to do that over multiple years.” And I was like, “No. If our value truly is about
inclusion, truly is about promoting diversity, we need to fix it and fix it now. And, think about it, it’s a little
ridiculous that a company the size of PayPal, even back then, can’t figure out
how to do $3 million when, if you’re going to promote diversity and
have it as a competitive advantage, you’re not paying equally.” And so, to me, it was truly a
no brainer to fix that right away. What did it take for you to be like, this is just
what – this is just what’s happening, and it’ll pay off in the long run? Yeah. I think there a combination of,
you know, people in our H.R. department saying, “Let’s
smooth this out.” People in our finance department saying,
you know, “Well, wait, this is going to have maybe some impact on
you know some of our financials.” But truly, in the great scheme
of things, it’s incredibly small. How do you define equal pay and how
do you reconcile the need for pay for performance with a need
to pay people equally? The way that we think about it is we
look first at job title, then we look at years of experience and
we look at location. So those are objective things that you can
look at and if you see pay differences there then the next thing you
do is you say, “OK, well what about performance?” And so you have to overlay some
subjectivity on that and based on performance. But the way you get away
from just that being a subjective thing is you bring in somebody from the
outside and you say, you know, “We want to pay equally and we want
to pay it based on objective, factual criteria as well as performance. And you come back to us and tell
us where we have gaps and where we don’t.” What has been the biggest
surprise and the biggest challenge? This isn’t just about, like, it’s the
right thing to do, it’s also about your own self-interest as a company
and how we best serve customers. Because this idea of more diverse
companies perform better, we need to stop that argument. That’s a fact. Can you give me an example though
whether you’re launching a new product or you are tweaking a service or
you’re talking about cybersecurity or something where your assumptions were
challenged and you benefited from having a diversity of voices? Are there – is there
anything that comes to mind? I think what’s definitely given us
an advantage is in recruiting talent. I think we have a really good reputation
that we are looking for a diverse workforce. And when you have the
best talent, then you serve customers better than anybody else.

12 thoughts on “PayPal CEO Dan Schulman On Closing The Pay Gap”

  1. So what is their Libertarian/Conservative diversity quota if he really believes it will perform better or just talk?

  2. Well, let's see, my PayPal was hacked, I cancelled my Ebay account, and pretty soon maybe cancelling my Amazon account!!

  3. Yes but the question isn't about diversity, that's the political correctness kicking in for publicity, the question is are these people regardless of sex performing at a level that justified a high wage regardless of sex? If the answer is yes then good for that individual. They deserved it vs magically get it because you have fallopian tubes inside your body.

  4. A CEO who is earning hundreds of times more than the average Paypal employee is talking about income inequality. Dan you are by far the most over payed person at Paypal. Dan 94% of all work place deaths are men, 80% of all homeless people are men. Women are not victims in the work place you over payed ignorant fool. No Company has ever been charged with paying a man more than a woman.

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