Semler Brossy's identification and analysis in fall 2020 of the 20 Fortune 200 companies that included a diversity and inclusion (D&I) metric in their incentive compensation program generated these noteworthy observations:
- All but one of the companies incorporated the metrics within their annual incentive plans or as an element of their annual performance evaluation. One company incorporated the metric within its long-term incentive program.
- Typical D&I weightings range from approximately 5% to 30% of metrics within annual incentive plans and are often a qualitative element of the individual performance review.
The report - which is planned to be updated quarterly - includes an informative table that summarizes, for each of the 20 companies, their particular D&I metric(s), weighting, performance outcome (if known), and a link to the underlying proxy statement.
See our prior reports: "Incentive Plan D&I Metrics: Consider This Approach" and "D&I Goals: Executive Compensation," and additional information & resources on our Executive Pay page. This post first appeared in the weekly Society Alert!