The Advisors' Blog

– Broc Romanek

Here’s an interesting piece from Semler Brossy’s Todd Sirras about how the design of pay can influence the diversity of a company’s workforce. Here’s an excerpt:

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.

Also see this blog by Pearl Meyer’s Deb Lifshey about using diversity as part of your pay goals…