EEO-1 disclosures growing rapidly, but still small percentage overall
– More companies are disclosing their EEO-1 data, but overall percentage is still small.
– NYC Comptroller has a campaign urging more S&P 100 companies to disclose this data.
An EEO-1 report is a compliance survey mandated by federal statute, which requires all U.S. employers (that have at least 100 employees and/or most federal government contractors) to file a report annually with the Equal Employment Opportunity Commission. Here’s an excerpt from a proxy season review by Alliance Advisors:
The New York City Retirement Systems (NYCRS) reported in late April that 62 S&P 100 firms now disclose or have committed to disclosing their EEO-1 data as a result of its letter-writing campaign begun last July. Prior to the launch of this initiative, only 14 S&P 100 firms publicized their Consolidated EEO-1 Report. Similarly, Calvert Research & Management reported that 32 of the 82 companies it engaged agreed to publish their EEO-1 survey responses.
And this older note from Just Capital illustrates the rapidly growing practice of companies disclosing their EEO-1 reports. The New York City Comptroller’s pressure on the S&P 100 certainly is helping that cause.
The note finds that, as of January, only 59 (6.3%) of the U.S.’s largest companies release this data – but that is up by 27 from December 21. As you can see in the chart in the article, companies committing to this higher level of disclosure have continued to slightly outperform their industry peers that have not released any data.
Just Capital makes it clear they’re not suggesting there is a causal relationship between EEO-1 disclosure and stock performance – and note that would be distracting from the fact that building an inclusive culture is a long-term journey. But the article notes that McKinsey has years of global research that link high degrees of inclusivity with long-term industry outperformance.
This other note from Just Capital goes into a deeper dive of those EEO-1 numbers if you want that granular detail…