DEI-Tied Executive Pay Loses Ground at Companies Amid Backlash

December 12, 2024, 10:00 AM UTC

More companies are ditching diversity, equity, and inclusion metrics to help determine their executives’ compensation amid a conservative backlash against corporate DEI programs.

The pullback, however, doesn’t mean the popular tie-in has been abandoned. In fact, a majority of S&P 500 companies and more than 40% of Russell 3000 firms that use environmental, social, and governance metrics in executive pay still link compensation to achieving DEI goals, according to a report the Conference Board, ESGAUGE, and FW Cook released Thursday.

S&P 500 firms’ use of DEI measures in executive pay dropped from 75% in 2023 to 67% in 2024, the ...

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