Pros and Cons of Tying Executive Pay to Diversity

ERIC SPERLING, HOST

Transformational Leadership from Community Conversations

Should companies be compensating executives when it comes to diversity efforts?

Community Collaborative brings leaders from communities across Arizona together to have conversations about diversity, equity and inclusion (DEI). The goal of the series is to create a first-of-its-kind inclusion index to hold businesses and organizations accountable for DEI progress. 

In this episode STN producers and featured guests from Copperpoint, Dickinson Wright PLLC  and NABEDC discuss actionable ways to cultivate change. 

A lot of executives, and a lot of people in general don't know how to get involved. . . They're timid about getting involved. If we just get them involved, if they just jump in the pool and start looking around, and swimming around they'll say "OK this is how this works.'

Tim Overton, Attorney and Diversity and Inclusion Consultant Tweet

Pro: It Gets CEOs Involved

Tim Overton uses the metaphor of offering children incentives for doing tasks and chores. He shares that when he started offering his children rewards for doing things on their own and being on time, they started to change their behavior. They might not have done it for the right reasons initially, but they are learning in the process.

We want to make sure that everybody iss doing the right thing. Holding the CEOs accountable, making sure that they're not just giving opportunities to their staff. We want to make sure they are empowering.

Kaaren-Lyn Graves, Project DIrector, NABEDC Tweet

Con: Doing it for the Wrong Reasons

Kaaren-Lyn Graves of NABEDC explains that it’s important for executives to go beyond just checking a box. It’s important for executives to extend diversity efforts into all parts of business operations and culture. 

It really needs to be about intention, not an incident. . . I think that when you make it part of the metrics of business success it becomes intentional.

Robin Reed, CEO , Black Chamber of Arizona Tweet

Pro: It's Results Driven

DEI policies like executive pay for diversity creates action. It might not be perfect and they way it’s carried out may evolve and change, but it brings progress into motion. It’s about embracing that it’s OK to start with DEI initiatives even if they don’t have all of the answers yet. 

I've seen so many different things work for different companies, and they need to be unique, to be catered to your company.

Tim Overton, Attorney and Diversity and Inclusion Consultant Tweet

Con: One Size Doesn't Fit All

A strategy that works for a company with hundreds of employees won’t work for a company with only 15 employees. Start by having a conversation. Then, Overton suggests conducting a DEI audit.

Our remarkable leaders came together and they decided to do a DEI roundtable. During this roundtable it was an opportunity for employees to voluntarily come to this community, to have a voice, to be heard.

Paula Boca-Bommarito, Assistant Vice President Enterprise brand and community strategy, Copperpoint Tweet

Pro: Everyone Has a Voice

Employees feel appreciated by executive teams who create DEI opportunities in the workplace. Having transparent, genuine conversations connects teams and establish a strong culture. 

Full transparency. . .

We are proud to say that the Community Collaborative is sponsored by some of Arizona's leading mission-based organizations.

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