Please enter your email address to access this article.
What is the best method to link executive compensation to diversity goals? Data from the DiversityInc Top 50 Companies from Diversity shows that 88 percent of these companies tie management compensation to diversity—11.5 percent of these companies tie bonuses to diversity compared with 5 percent five years ago, and 86 percent have their CEO sign off on executive compensation tied to diversity, compared with 72 percent five years ago.
Can their strategies help your company determine how to successfully link results in diversity-management initiatives, usually but not always demonstrated through human-capital metrics? In this 4,894-word comprehensive report, “Executive Evaluation Research,” DiversityInc offers the results of interviews with IBM (No. 7 in the DiversityInc Top 50), Kraft Foods (No. 9), Merck & Co. (No. 15), Aetna (No. 19), Novartis Pharma AG (Novartis Pharmaceuticals Corporation is No. 21) and Rockwell Collins (No. 42).
Executive compensation is usually measured through company-wide and individual goals, such as being a cross-cultural mentor or the executive sponsor of an employee-resource group. The most common ways to assess individual progress are to start with a self-assessment tool and then have a supervisor-assessment tool that measures behavior. Goals are assigned and executive compensation is tied to how these goals are met. None of these companies take compensation away for failure to meet these goals.
In this downloadable PDF, readers will discover:
- Self-assessment tools for 10 key areas of critical behavior, including personal diversity work, such as behavior, innovation and risk-taking
- The enterprise and business units that top-scoring companies assess on a regular basis to determine year-end bonuses and raises associated with diversity goals
- How unit performance, company performance and diversity metrics are linked together
- What diversity scorecards at Aetna, Novartis Pharma AG and Merck & Co. look like
Please enter your email address to access this article.
