BT has scrapped bonus scheme components that included diversity measures for thousands middle managers.
The FTSE-100 firm informed investors that it intended to remove the diversity equity and inclusion component of its scorecard from its lower level managers next year but would retain it for its 550 senior leaders.
BT’s managers receive bonuses that can be up to 10% depending on the targets they meet for gender, disability and ethnicity. They also have to engage with employees who are underrepresented. The bonuses will now be based on employee engagement.
A BT spokesperson said that progress toward its DEI goals – which will be retained – has been mixed. The company’s 2025 goals were to have 41% of the senior management team be women, 15% come from ethnic minorities, and 10% are disabled.
Currently, 35% are women and 9% come from ethnic minorities. BT, however, has exceeded its target for disability by 4%.
A BT spokesperson said: “We are committed to our inclusion targets and we make good progress in achieving them. The inclusion of women in senior management will continue to be a factor when calculating bonuses for our executives. We have also received strong support from shareholders regarding the proposal to change our group scorecard.
The Telegraph first reported the proposed changes. Allison Kirkby, the first woman to be appointed chief executive officer of the Telecoms group in the last year, spoke about her commitment to inclusivity.
In a memo, she said: “It has been difficult to watch companies and governments retreat from their commitments to inclusion and equity. It must be upsetting and worrying for many people to watch this unfold.
It sends a message that these things can be considered optional, temporary or are not important enough to prioritize. “I want to be clear: That’s not the BT way of thinking.”
In the US, a perceived backlash has been taking place against DEI initiatives for the last 18 months. Companies such as Meta and McDonald’s have modified or diluted their DEI programs. A Supreme Court ruling in 2023 declared that universities could not consider race when making admissions. This led to organisations avoiding promoting progressive DEI policy.
Donald Trump added to the pressure by issuing a directive to federal agencies to end DEI initiatives, and encouraging private firms to do so. He even went so far as to connect last week’s Washington DC Air Disaster which cost 67 people their lives with air traffic DEI policies without any evidence.
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