Why tying compensation to diversity is a double-edged sword
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It’s tempting to solve diversity issues through CEO compensation incentives, but investors need to understand the problem is more nuanced.
This is according to Anna Snider, head of due diligence for the wealth management division of Bank of America Merrill Lynch, who said there is not enough data to show this approach works.
‘It is also good to have economic incentives and disincentives. It is about what the knock-on effect of that is and what CEOs or organisations in general end up doing, in order to achieve that.’
Also in this podcast, Snider explains how her team interacts with asset managers on diversity data and where companies can still do better.
This is according to Anna Snider, head of due diligence for the wealth management division of Bank of America Merrill Lynch, who said there is not enough data to show this approach works.
‘It is also good to have economic incentives and disincentives. It is about what the knock-on effect of that is and what CEOs or organisations in general end up doing, in order to achieve that.’
Also in this podcast, Snider explains how her team interacts with asset managers on diversity data and where companies can still do better.
