"Diversity Goals in Executive Compensation Plans" from Pearl Meyer discusses the slow trend toward including diversity or D&I among executive incentive compensation plan metrics with reference to a handful of big-name companies that have disclosed their plans, including Uber, Microsoft, Intel, Johnson & Johnson, and Facebook.
While the specific measures and weightings being used by companies that are incorporating D&I into their compensation plans often are not discernible and the ultimate impacts of including these measures are still unknown, the focus by investors and companies on using compensation as a vehicle for spotlighting and incentivizing increased workforce diversity (whether in response to data, a corporate crisis or otherwise) is certainly intensifying and warrants monitoring.
See also our prior reports: "ESG Metrics & Executive Compensation," "Sustainability-Linked Executive Compensation," "Benchmarking ESG Incentive Plan Metrics" and "Executive Compensation: E&S Performance Metrics," and additional resources on our Executive/Employee Pay and ESG pages. This post first appeared in the weekly Society Alert!