MIRIAM ROZEN, REPORTER, FINANCIAL ADVISOR IQ: Diversity and inclusion metrics factored into CEOs' 2020 compensation at Morgan Stanley, Bank of America and Wells Fargo, according to their Securities and Exchange Commission filings. But because banks are less transparent about how CEO pay is set than companies in other industries, it's hard to determine how much progress on diversity and inclusion — or lack thereof — weighed in financial compensation decisions.
ERIC HOSKEN, PARTNER, COMPENSATION ADVISORY PARTNERS: I think generally the incentive plans at this set of banks are pretty opaque. They're by design, it considers a lot of factors and then weighs them. But I think it's going to be hard for shareholders to really parse out what was attributable to that unless the company says, we explicitly reduced or increased compensation for that specific reason. There are other companies in industry where they use a plan where it's more of a scorecard that everyone can see.
MIRIAM ROZEN: Companies began focusing on the issue several years ago, but diversity and inclusion questions have more recently come to the forefront.
ALAN JOHNSON, MANAGING PARTNER, JOHNSON ASSOCIATES: I think we're all realizing it's also not as linear as the number of females versus males or different levels. There's genders, there's different geographies. I think we're all realizing it's a more complicated goal than we thought five years ago. So I think firms are trying very hard. It's under a lot of scrutiny, but it's going to be a goal that's going to take years to achieve.
MIRIAM ROZEN: For Financial Advisor IQ, this is Miriam Rozen.