With more companies like McDonald’s and Walmart ending DEI initiatives, corporate boards can count on continuing pressure from conservative groups to abandon diversity programs. Getting shareholders’ input on the issue offers corporate boards tremendous support.
Directors should be re-evaluating their company’s positions in several areas to avoid major problems that could end in lawsuits—or worse.
In both cases, NCPPR has labeled DEI as “illegal discrimination” and cites the threat of lawsuits as the primary risk and reason for getting rid of DEI programs.
Despite trending backlash, many companies continue to include at least once ESG metric in executive pay incentives.
No matter which side of the DEI debate directors are on, corporate boards will likely pay close attention to what happens with the vote on this anti-DEI proposal.
Without Nasdaq’s requirement for listed companies to have one women, one minority and one LGBTQ director, or explain why they do not, boards should reevaluate where they stand on DEI.
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