Executive Pay Increasingly Tied to DEI Goals

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 Advisors LLC is an independent premier executive compensation, performance, and corporate governance consultancy. Farient provides a full array of services, linking business strategy to compensation through a tailored, analytically rigorous, and collaborative approach. Farient has locations in Los Angeles, New York, Louisville, and Dallas and works with clients globally through its partnership in the Global Governance and Executive Compensation Group (GECN). Farient is a certified diverse company and is recognized by the Women’s Business Enterprise National Council.