Tying Executive Bonuses To Diversity Is Gaining Momentum

Law360 (March 2, 2021, 6:34 PM EST) -- Corporate giants such as McDonald's and Starbucks have blazed a trail for other companies to follow by linking executive bonuses to hitting diversity benchmarks.

And due to pressure from institutional investors and changes to federal executive pay rules, tying top brass' compensation to success with diversity and inclusion measures has become an increasingly popular route for companies, attorneys say.

"This is one of the hottest topics that is being discussed when it comes to executive compensation philosophy," said Gretchen Harders, a member of Epstein Becker Green's employee benefits and executive compensation practice. "It sends a strong corporate message [about commitment to D&I]...

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