A year on from IBM’s diversity and inclusion commitment
In 2021, IBM and 94.3% of its shareholders came together to back a diversity and inclusion report.
Written by Elena Trayanova
IBM is one of the best-known computer companies in the world. In April 2021, its shareholders asked the company to publish a yearly report on how it promotes diversity, equity, and inclusion (DEI).
In a rare occurrence, the Board of directors supported this proposal and urged shareholders to vote “in favour”. After 94.3% of shareholders did in fact, vote in favour, IBM disclosed an overview of its DEI efforts and programmes.
Although other companies, such as Bank of America and Johnson & Johnson received similar proposals, they did not share IBM’s enthusiasm and recommended that shareholders vote “against”.
Why was this vote put forward?
In its 2020 Diversity and Inclusion report, IBM emphasised that it “needs to do more” about diversity and inclusion and detailed its plans to intensify its commitments.
However, in 2021 those commitments were still not enough for some shareholders. So, they submitted the above proposal and called out IBM for the lack of gender and racial diversity in its leadership. They also asked the company to assess the effectiveness of its DEI programmes.
What did IBM say?
In response, IBM highlighted its strong history of supporting DEI since 1899, including writing its first equal opportunity policy 10 years before the US Civil Rights Act. IBM said the proposal aligned with its existing commitments and urged shareholders to vote in favour.
One year on, what has changed?
IBM’s 2021 ESG Report states that minority representation in executive positions has already improved. As a result of the proposal, the company added a diversity modifier to its executive compensation programme. This modifier is based on the improvement of representation for women, as well as Black and Hispanic executives globally.
Respectively, each of these groups saw a 37.6%, a 7.7%, and a 6.8% increase in representation since 2020. Additionally, IBM has committed to disclose its EEO-1 data for the US from 2022 and plans to continue to progress and act on its diversity and inclusion commitments.
✅ 73% of Tumelo users voted in favour.
✅ Their fund manager voted in favour at IBM’s AGM.
✅ IBM shareholders voted 94.3% in favour.
🎉 Vote passed. Change in action.
Reclaim your shareholder rights.
If you already have Tumelo, go to your platform and get voting. If not, ask your HR team or pensions/ investment provider for access. Your money is invested in big companies, you have a voice!
