Thoughts When Linking Public Company Executive Pay to D&I Initiatives

The screaming need has been for #HR and #Diversity teams to connect revenue (+) and cost (-) drivers to the initiatives they implement, which requires partnership with BU Leaders and #Finance. Now, it's imperative given #leadership may have #compensation tied to it.

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Who’s interested: Primary – Exec. Compensation, BoD and CXOs, Secondary – CHROs and CDO

Takeaway(s):
– For publicly-traded companies, there is a push to align executive pay with D&I initiative success
– Success of the D&I initiative should be the goal; however, avoiding awkward proxy disclosure should also be considered when designing the D&I performance targets
– Consider having the D&I metric designed to act only as a downward pay modifier to a financial performance metric

ideascape view: Definitely follow this blog! The screaming need has been for #HR and #Diversity teams to connect revenue (+) and cost (-) drivers to the initiatives they implement, which requires partnership with BU Leaders and #Finance. Now, it’s imperative given #leadership may have #compensation tied to it.

One example where we found success is a company reduced diversity-related recruitment expenses, and influenced future revenues, by using the networks of Suppliers and Customers to source Director+ level openings. If you’d like more detail or ideas – send us a message.

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