June 25, 2020
Linking Diversity Progress to Executive Pay
– Lynn Jokela
I’ve blogged before about starting the conversation of tying ESG metrics to executive comp – as it’s not necessarily easy. Wells Fargo appears to be taking a step in that direction as news outlets reported that the bank will be tying progress on diversity to executive pay. This American Banker article says that members of the lender’s operating committee will be evaluated annually on progress made in terms of representation and inclusion of diverse employees in areas they oversee and it will impact operating committee members’ year-end pay.
Other goals include doubling black leaders at Wells Fargo within the next five years and creating a new diversity and inclusion executive that will report directly to the CEO. An article from The Charlotte Observer describes the moves by Wells Fargo as being some of the most aggressive on Wall Street – time will tell if other financial services firms follow Wells’ lead…