Google Shareholders Kill Employee Backed Diversity Proposal

Last week, Alphabet (Google's stock name) shareholders voted down several proposals, led by employee groups, that would have tied pay to diversity goals.

Killing Employee Diversity Agenda

This is the first major company to be confronted with linking renumeration with diversity and inclusion -  and it is a sobering trend that will, I believe, proliferate. In this case, Alphabet management, which has voting control of the company, soundly rejected the proposal in a unanimous vote.

The group that made the diversity-linked-pay proposal argued that the current gender pay gap and lack of diversity in the workforce, makes it much more difficult to hire and retain employees and curbs innovation. "Diversity and inclusion proposals have been met with an array of responses, including formal reprimands" stated Irene Knapp, a software engineer. "this has had a very bad effect and has impaired the company's culture."

In response, Eileen Naughton, Head of Alphabet's HR, stated "We are committed to an internal goal to reach market supply representation of women and minorities by 2020, which will bring hiring in line with the diversity of the candidate pool."  

Several hundred employees had organized to challenge the company to address the persistent underrepresentation of women and other minorities in the workforce.

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The diversity and inclusion issue is hitting both private and public companies alike - but this should come as no surprise. The question being: whether or not the protests are relevant?  Lets face it, what is being asked for is a quota hiring and promotion system - now that would really impair the corporate culture.

The diversity and inclusion card is being played at all levels, not just in corporate boardrooms. Many terms and definitions have been banteed about but how diverse can we get: gender, race, sexual preference, religion, political stance, immigration posture, age, income level, and on and on.  The whole issue is becoming so large but so fragmented that it loses its meaning. The result: everyone is in a  minority group! 

Jim Lavorato