DEI Comp Metrics in Question After Harvard Ruling

DEI Comp Metrics in Question After Harvard Ruling

August 25, 2023, Agenda

Lindsay Burke’s analysis of the broader effects of the U.S. Supreme Court’s Students for Fair Admissions Inc. v. President and Fellows of Harvard College decision was included in a recent Agenda article. The article examines how the ruling  will factor into diverse-hiring practices and executive pay in higher education.

Lindsay stressed that as long as the underlying DEI measures at a company are legal and implemented lawfully, any compensation metrics tied to them would also be legal.

“Responsibly implemented employer DEI programs have been developed to align with existing Title VII law, which has always prohibited employment decisions based on race and other protected characteristics,” she said. “The Harvard admissions decision did not change Title VII.”

Lindsay added that companies remain obligated to increase diversity after the Supreme Court’s decision. “There are dozens of ways to increase representation that do not involve specific hiring decisions and are entirely lawful, such as expanding the sourcing of entry-level applicants to a broader swath of colleges and universities,” she said. “This is entirely lawful, and tying executive compensation to the implementation of such measures would also therefore be lawful.”