February 23, 2022
Financial Institutions Less Pressured About DE&I in Incentive Plans
I previously blogged about some stats around DEI metrics for the 100 largest companies in the Fortune 500 & those that were publicly committed to improving DEI performance. If you’re looking for more stats for benchmarking purposes, here are some survey results from Pearl Meyer that analyzed, among 421 total respondents, 111 companies in the financial industry and how they track & utilize DEI in executive compensation. Highlighted below are some of the findings:
– Close to 30% of financial institutions in the survey reported that DE&I are included in annual incentive plans with a smaller percentage (14%) including in long-term incentive plans.
– Over 85% of financial industry respondents report that they feel little, no pressure or are neutral about putting DE&I measures in incentive plans, while all industry response was closer to 75% in those categories.
– For those financial institutions that do not include DE&I in incentive plans, 43% believed “DE&I is an expectation for our executives and it does not need to be further reinforced through incentive plans.”
– The financial industry utilizes ESG scorecards at a lower percentage than all industry respondents; included now at 27% vs 44% and with 46% of financial industry respondents reporting that they have not and do not plan to utilize ESG scorecards to discuss DE&I metrics.
– Emily Sacks-Wilner