Semler Brossy’s “Using Compensation to Promote Diversity, Equity, and Inclusion” suggests a logical framework and considerations for companies to assess their readiness to include DE&I metrics in their incentive programs. The firm suggests alternatives companies may consider if they determine based on a readiness “decision tree” that they are prepared to move forward with DE&I metrics to ensure that they serve the intended purpose. Companies that don’t pass the “readiness test” are advised to consider enhanced reporting as a means of elevating the importance of DE&I in lieu of implementing metrics that may fail to meet the desired objectives or have unintended consequences.
See our recent report: “Incentive Compensation Metrics: D&I”; these articles: “Look Beyond Incentive Pay to Spur Inclusion” (Semler Brossy); and “Linking pay to ESG targets could have unintended consequences” (Board Agenda); and numerous additional benchmarking resources and guidance on our Executive Pay page. This post first appeared in the weekly Society Alert!