How Boards Can Avoid the Pitfalls of DE&I in Incentives

Nearly 30 percent of companies in the S&P 500 used a diversity, equity, and inclusion (DE&I) metric in executive incentive design last year, and a quarter of these businesses did so for the first time. However, companies looking for a quick fix to DE&I should move cautiously. Compensation is a sensitive topic, and what gets measured gets done. Without careful consideration, DE&I metrics in incentive plans can produce unintended or counterproductive outcomes...

Semler Brossy is a NACD partner, providing directors with critical and timely information, and perspectives. Semler Brossy is a financial supporter of the NACD.

Blair Jones is a managing director at Semler Brossy with 30 years of consulting on executive compensation.

Margaret Hylas is principal at Semler Brossy Consulting Group.