Companies Tie Pay, Performance Ratings to Gender Recruiting Targets

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Companies with female finance chiefs are more profitable than those without, a recent study indicates

By Nina Trentmann Nov. 5, 2019 5:30 am ET Pressure from investors and lawmakers to boost gender diversity in the executive ranks and the boardroom are prompting more companies to consider a wider array of C-suite candidates and, increasingly, tie performance reviews and pay to hiring targets.

Still, the number of female executives at large U.S. companies is quite low. In 2018, 12.8% of CFOs of Fortune 500 companies were women, according to data from Spencer Stuart. During that year, only 9% of companies in the Fortune 500 appointed female CEOs, according to the recruiting firm. Recruiters say companies in the past year have increasingly requested more diverse candidates. Meanwhile, more companies are setting internal recruitment and promotion targets that promote diversity.

“The only way this is going to change is when companies become convinced that this is best for their business,” Ms. Story said. “Tie it to the incentives,” Ms. Gordon said. “When you are struggling to achieve diversity, it is up to the leadership and the board to say, ‘We are making an economic difference.’”

Failure to meet diversity goals is reflected in performance reviews, which ultimately can affect bonuses. “This creates accountability,” said Mr. Sulentic, who in April hired a female finance chief, Leah Stearns.

 

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UnitedVoteRed If that is the case RE. Why tie pay to gender based hiring & not profit based hiring ?

Sexism.

These dumb studies

UnitedVoteRed Cause/effect?

Nice to know that so many business leaders believe the solution to creating 100% 'equal' gender representation on boards of directors is to institute discriminatory hiring practices. Welcome to America, folks.

Who would have thought.

Companies with minority leaders are 35% more profitable than peers, says McKinsey

I've used these two rules to good effect over the years:

Statistics are fun

Gender quotas. Is this legal?

To rephrase the headline: Companies Add Financial Incentives to Encourage Discrimination Because that's really what this means I remember when quotas were illegal...

What are you trying o say Spit it out

That's right ladies. Get a job at a company and forgo creating a family until your 45.. Why? because companies need MORE PROFITS!!

More and more chief play the role of product manager, so better with related knowledge and an open mind.

Yeah, we saw that with Areva ‘ ceo Anne lauvergon...

Ping LCalmore CelineLz 💪

This is so dumb do people not think that maybe, just maybe women choose to do something other than be in the boardroom?

中国有句俗话说:男女搭配,干活不累。就在说明女人至关重要

This is called sexism

Probably because they're known to cook the books the most.

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