Global employers are shifting their approach toward the use of diversity, equity and inclusion metrics in their executive compensation plans amid growing politicization of DEI, according to a new report by WTW.
The report analyzed filings from companies listed on the S&P 500, the TSX 60, the FTSE 100 and other major indices in Europe. It found between 2024 and 2025, there was a 21 per cent drop in the overall use of DEI metrics among North American companies (from 55 per cent to 34 per cent) and a three per cent decrease among European firms (from 59 per cent to 56 per cent).
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In the U.S., both quantitative and qualitative DEI metrics decreased in prevalence by about 10 per cent. By comparison, European companies’ use of quantitative DEI metrics increased by six per cent while prevalence of qualitative DEI metrics decreased by 17 per cent across both annual and long-term incentive plans.
While the percentage of companies reducing their use of DEI metrics will likely increase as more data becomes available — particularly among U.S. companies, in light of recent presidential executive orders around DEI — the current findings suggest many companies are staying the course, the report noted, adding most boards have taken a measured approach to recalibrate their narrative and create an inclusive work environment for their employees.
“Looking ahead, boards have learned that the future of DEI metrics in executive pay will not be binary — it isn’t about whether they are ‘in’ or ‘out.’ Instead, boards must navigate the gray area, adapting how they operationalize inclusive values in ways that balance risk, transparency and impact.”
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