Executive Pay As a Way to Advance Diversity Efforts
Here’s an excerpt from an interesting piece from Semler Brossy’s Todd Sirras about how the design of pay can influence the diversity of a company’s workforce:
It is noteworthy that the median revenue of companies referencing D&I in their CD&A disclosures has fallen by 75 percent in the same eight-year period to $6.5 billion. This implies that more boards of medium-sized companies are recognizing and reflecting the value of D&I in compensation decisions. (For reference, the median revenue of all Russell 3000 companies is approximately $1 billion.)
The large majority of these D&I references are listed as material factors in discretionary elements of pay decisions, but the usage of such references in formal, metric-driven portions of pay programs is also increasing. This trend will continue over time as D&I approaches become more standardized and commonly accepted, or even expected by investors and other stakeholders.
-Broc Romanek, CompensationStanadards.com August 7, 2019
Want to keep reading?
Great. Enter your email address and gain instant access to this article