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Haleon is to axe diversity targets from its executive bonus scheme in the latest sign that UK businesses are rowing back on DEI.
The Sensodyne-maker has confirmed that its chief executive and chief financial officer will no longer have to meet gender representation targets to maximise their pay.
The diversity targets had formed part of the company’s share scheme, which accounts for a significant portion of executive remuneration.
Last year, Brian McNamara, the company’s chief executive, secured share payouts worth £6m, taking his total pay package for the year to £9m.
Under the 2022-2024 share plan, executives were set targets for women to hold at least 44.5pc of leadership roles, which the company subsequently met.
However, Haleon – which was split out from GSK in 2022 – has now removed the gender diversity target for the coming year to “ensure continued compliance with requirements in countries in which we operate”.
It follows a pushback from the US government over corporate diversity initiatives, spearheaded by Donald Trump since coming to power in January.
The move comes just weeks after GSK, which counts the US government as one of its largest customers, also revealed it was watering down diversity targets for its executive bonus scheme.
The London-listed drugmaker said it was putting diversity activities on pause to review them, adding: “We have to ensure we remain compliant with the law in the countries in which we operate, including the US. We are consulting and talking to our people about all of this.”
Mr Trump has sought to ban federal agencies and contractors from setting diversity, equality and inclusion (DEI) targets, while he has also signed into law new rules that require companies to scrap targets.
This shift has already filtered through to the UK, with a recent poll of 500 City executives showing that one in three bosses now believe DEI has gone too far.
Figures compiled for The Telegraph by job site Adzuna last month revealed that hiring for DEI roles has fallen by a third since last year.
Following the latest change in policy, a Haleon spokesman added: “Haleon is committed to an inclusive organisation that represents the consumers and communities who rely on our brands. This commitment has not changed.”