Executive Pay Increasingly Tied to DEI Goals

October 10, 2022

Linking DEI goals to exec pay isn’t going away anytime soon. Despite some pushback, tying executive pay to diversity, equity and inclusion (DEI) goals rapidly continues. According to new Farient research, more than one out of every three S&P 500 companies now factor DEI into compensation, sending a signal of confidence in using DEI as a key performance measure.

In this newly published brief, Farient goes beyond the headlines to examine how:

  • Sectors differ in the use of DEI metrics
  • The prevalence of prospective vs. post-performance measures
  • The use of qualitative as opposed to quantitative reporting on DEI ambitions
  • The backlash from some investors and how legal challenges could put a chill on DEI in the future

 

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About Farient Advisors 

Farient provides a comprehensive array of services to boards and management including compensation program design, performance measurement, goal setting and pay for performance alignment, board of directors’ compensation, stakeholder incentives (climate, diversity, equity, and inclusion (DEI), transactions (mergers and acquisitions, spinoffs, pre-IPO/SPACs), and shareholder communications. Farient has locations in Los Angeles, New York, Louisville, and Dallas and is a founding partner of the Global Governance and Executive Compensation (GECN) Group, serving clients in more than 35 countries. Farient is recognized by the Women’s Business Enterprise National Council as a certified diverse company.

 

 

 

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