Linking Executive Pay to Diversity: Starbucks Joins the Party
Last week, Starbucks announced that it would tie executive pay to 2025 diversity targets — joining a small but growing number of companies to do so (JPMorgan also recently got some press for cutting executive bonuses due to a failure to advance diversity, which was notable since that program doesn’t rely on formulaic goals).
Starbucks’ commitment is part of the company’s overall effort to advance racial and social equity, including anti-bias training and mentorship programs. Here’s more detail:
We will be transparent in our approach to Inclusion and Diversity goal setting and progress.
– We are committed to publicly sharing our current workforce diversity.
– We will set annual Inclusion and Diversity goals based on retention rates and progress toward, achieving BIPOC representation of at least 30% at all corporate levels and at least 40% at all retail and manufacturing roles by 2025.
– We will complete the roll out of an analytics tool that will provide leaders with visibility to current diverse representation relative to Starbucks representation goals.
– We will continue to publicly share our Inclusion and Diversity commitments, goals, and progress through annual reporting.
We will hold ourselves accountable at the highest levels of the organization.
– We will incorporate measurements focused on building inclusive and diverse teams into our executive compensation programs beginning in FY21.
– We will establish an internal governance structure to integrate Inclusion and Diversity throughout the organization, beginning with an Inclusion and Diversity Executive Council in Q1 FY21.
– We will require all vp+ leaders to complete a 2-hour anti-bias training and the foundational and racial bias courses from the To Be Welcoming Curriculum as a role expectation.
– We will join the Board Diversity Action Alliance to act alongside peer companies as we are committed to representation of racially and ethnically diverse directors on corporate boards of directors.
-Liz Dunshee, CompensationStandards.com October 21, 2020
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