The firm argues that when employees understand the why behind their pay, it“ builds trust, fosters genuine engagement, and creates a culture where everyone understands their value.”
To translate this into action, HR leaders are required to move away from traditional, siloed decision-making and toward more holistic forms of governance. Sander Schouten, Director in PwC’ s Executive Reward team, emphasises that this shift is ultimately about converting a legal mandate into a powerful reputational asset.
He says:“ Transparency is no longer just a compliance issue; it’ s a tool to build trust. Companies that clearly explain how their pay structures align with strategy and performance gain more support from shareholders, employees and the public.”
Looking beyond compliance The directive has had, and will continue to have a huge impact across the globe, with business leaders such as Microsoft and Citigroup leading the way. However, only 9 % of Europe-based employers are believed to have a full transparency
72 July 2026