Carlyle Group Inc. is the latest company to tie compensation of its chief executive officer to the firm’s performance on certain diversity and inclusion goals as corporate America tries to make good on promises to boost underrepresented talent.
Kewsong Lee’s pay, which totaled $16.4 million last year, will be measured against a “comprehensive set of metrics” including the hiring and development of an inclusive culture, as well as meeting the company’s target of having 30% of board seats of its portfolio companies filled by diverse candidates by 2023, according to Kara Helander, chief diversity, equity and inclusion officer at Carlyle.
Year-end performance bonuses will be contingent on meeting individual diversity objectives, per a firm spokesperson. “Reviewing our progress in each of our groups around DEI has been part of our rhythm for the last few years,” Helander said in an interview. “What we’re doing now is we’re making it a more explicit part of our compensation across the board.”Carlyle to Tie CEO Pay, Worker Bonuses to Diversity Goals – Bloomberg
NOTE: In February, Carlyle Group Inc. established a $4.1 billion credit line that ties borrowing costs to how well its portfolio companies achieve board diversity goals. They must have 30 percent diverse directors on their board within two years of ownership to qualify for optimal debt pricing.