BT is scrapping bonus scheme elements that include diversity measures for thousands of middle managers at the telecoms giant. 

The FTSE 100 firm told investors that although it planned to remove the diversity, equity and inclusion element of its scorecard for its lower-level managers from next year, it would retain the measures for its 550 most senior leaders.

Currently, up to 10% of the annual bonus payable to BT’s 37,000 managers is dependent on targets for representation by gender, ethnicity and disability, and engagement among under-represented groups of employees. This will be replaced by bonuses awarded on the basis of employee workplace engagement.

A spokesman for BT said progress towards its DEI targets – which are being retained – had been mixed. Its goals for 2025 were for 41% of its senior management team to be female, 15% from ethnic minorities and 10% with a disability.

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As it stands, 35% of BT’s senior managers are female and 9% are from ethnic minority groups. BT has exceeded its disability target, however, by 4%.

A spokesman for BT said: “We remain committed to our inclusion and representation targets and are making good progress towards them. Inclusion will remain part of our senior management bonus calculations and we have received strong support from our shareholders on the proposals to amend our group scorecard.”

The proposed changes were first reported by The Telegraph and were put forward after Allison Kirkby, who was appointed as the first female chief executive of the telecoms group last year, told staff of her commitment to inclusion.

She said in a memo: “It’s been hard lately to see companies and governments stepping back from their commitment to inclusion, equity and diversity. For many of you watching this unfold, I imagine it feels worrying and upsetting.

“It sends the message that these things are optional, temporary or not worth prioritising. I want to be absolutely clear: that’s not what we believe at BT.”

A perceived backlash against DEI initiatives has been underway in the US for the past 18 months, with companies such as Meta, McDonald’s and Walmart modifying or diluting their DEI initiatives. In 2023 a Supreme Court ruling ruled that it was unconstitutional for universities to consider race in admissions, discouraging organisations from promoting progressive DEI policies.

President Donald Trump has added pressure by issuing an executive order directing federal agencies to terminate DEI initiatives and encouraging private companies to do the same. He has even gone as far as to link last week’s Washington DC air disaster, which cost 67 lives, with air traffic control DEI policies, without evidence.

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