The Advisors' Blog

– Liz Dunshee

Last week, Starbucks announced that it would tie executive pay to 2025 diversity targets – joining a small but growing number of companies to do so (JPMorgan also recently got some press for cutting executive bonuses due to a failure to advance diversity, which was notable since that program doesn’t rely on formulaic goals).

Starbucks’ commitment is part of the company’s overall effort to advance racial & social equity, including anti-bias training and mentorship programs. Here’s more detail:

We will be transparent in our approach to Inclusion and Diversity goal setting and progress.

– We are committed to publicly sharing our current workforce diversity. (View Public Data).

– We will set annual Inclusion and Diversity goals based on retention rates and progress toward, achieving BIPOC representation of at least 30% at all corporate levels and at least 40% at all retail and manufacturing roles by 2025.

– We will complete the roll out of an analytics tool that will provide leaders with visibility to current diverse representation relative to Starbucks representation goals.

– We will continue to publicly share our Inclusion and Diversity commitments, goals, and progress through annual reporting.

We will hold ourselves accountable at the highest levels of the organization.

– We will incorporate measurements focused on building inclusive and diverse teams into our executive compensation programs beginning in FY21.

– We will establish an internal governance structure to integrate Inclusion and Diversity throughout the organization, beginning with an Inclusion and Diversity Executive Council in Q1 FY21.

– We will require all vp+ leaders to complete a 2-hour anti-bias training and the foundational and racial bias courses from the To Be Welcoming Curriculum as a role expectation.

– We will join the Board Diversity Action Alliance to act alongside peer companies as we are committed to representation of racially and ethnically diverse directors on corporate boards of directors.