Starbucks To Link Executive Pay To Diversity Goals

Starbucks To Link Executive Pay To Diversity Goals

Starbucks will increase diversity within its company by tying executive pay to diversity goals for the coffee giant.

The company did not specify how it will tie pay to diversity goals but Starbucks did establish a goal to raise the number of Black, Indigenous, and People of Color (BIPOC) within its ranks. Starbucks is shooting for 30% BIPOC employees by 2025. Currently less than 20% of Starbucks employees at the level of senior vice president or above are people of color.

The coffee chain also announced that it’s launching a mentorship program that will connect employees of color with senior leadership. In addition, anti-bias materials and training will be included in its hiring, development, and performance assessment processes.

Starbucks began changing its operations after a 2018 incident where an employee called the police on two Black men who were waiting for a friend to discuss a business venture. The incident led to a boycott Starbucks movement. A few days later, Starbucks’ Chief Executive Kevin R. Johnson apologized in a statement, calling the situation “reprehensible.”

Later in 2018, Starbucks closed thousands of locations across the country for anti-bias training. Last year, Starbucks commissioned an assessment on its commitment to civil rights, diversity, and inclusion.

The Black Lives Matter resurgence this summer led to other national chains and brands making diversity commitments. Adidas, Microsoft, Wells Fargo, and others have pledged to boost diversity within their executive offices.

Adidas said it will fill 30% of new positions with Black or Latinx people. Microsoft pledged to double the number of Black and African American company leaders and executives by 2025. And Wells Fargo plans to double the number of Black employees over the next five years.

For Wells Fargo, the announcement comes the same year the bank was forced to pay $8 million in a hiring bias settlement stemming from allegations of hiring discrimination against women and Black workers.