A growing trend among America’s largest corporations reveals a shift in how diversity, equity, and inclusion (DEI) metrics influence executive compensation. According to a review of approximately 1,200 companies by Farient Advisors, the proportion of corporations using DEI metrics to set compensation has decreased from 33% to 28% in 2023. High-profile companies like Best Buy Co., Johnson & Johnson (J&J), and Lazard Inc. are among those that have de-emphasized or removed DEI from their executive pay criteria. Conservative Pressure and Corporate Response This shift is partly attributed to conservative activists
After Elon Musk’s comments criticizing diversity initiatives, Tesla has removed language about having a majority-minority workforce. Tesla has omitted a line from its latest Securities and Exchange Commission filing. In its 10-K filing last month, a comprehensive report on Tesla’s activities throughout 2023, the company removed a line it used a year ago. The original line read, “With a majority-minority workforce, empowering our employee resource groups to take charge in driving initiatives that attract, develop, and retain our passionate workforce is vital to our continued success.” What Has Musk Said?