Back in 2021, fast-food giant McDonald’s announced a plan to tie 15% of executives’ annual incentive bonuses to meeting DEI—diversity, equity, and inclusion—goals, such as increasing the percentage of women and underrepresented groups in senior leadership roles. The company also set a four-year goal to have 35% of leadership roles in the U.S. filled by people from underrepresented groups. At the end of 2023, representation reached 33%, a 5% increase from 2022.
Now, McDonald’s is pursuing a different course. On January 6, the leadership team announced the company is retiring some of its DEI initiatives, such as “aspirational representation goals" and supplier diversity targets. But McDonald’s annual incentive plan continues to hold the CEO and senior executive officers accountable for efforts that drive employee engagement and values, including inclusion.
