EXECUTIVE COMPENSATION
& DIVERSITY GOALS
3 CASE STUDIES
real connection to business results and
argue that linking it to compensation
makes it not just “the right thing to
do.” That argument, as readers of this
publication know, will put your orga-
nization at a serious compet-
itive disadvantage in the war
for talent as well as outreach
to customers and clients. The
second argument is that set-
ting specific metrics and goals
creates a problem for the legal
department, as the goals are
perceived as quotas. There is real dif-
ference between quotas and metrics
that assess progress, usually measured
in the form of percentage gains of
traditionally underrepresented groups.
Lawyers from the 92 percent of The
DiversityInc Top 50 Companies for
Diversity that do set goals and do tie
compensation to those goals will tell
you clearly that there is no legal
hindrance to doing that.
So once you get past these
scurrilous arguments, what
should you do? Here are three
case studies of companies
that have done this the right
way and achieved significant
results. Learn from their efforts—and
please contact us at benchmarking@
DiversityInc.com if you want more
specifics on your individual situation.
Executive Compensation Best Practices
• of Bonus Tied to Diversity
11.5%
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5%
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1.1%
•535 participants in 2011 DiversityInc Top 50
• CEO Signs Off on Executive
Compensation Tied to Diversity
86%
72%
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21%
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