Ditching diversity | ASOS drops DEI bonus targets - executives told to focus on profit instead

The online fashion and cosmetics retailer ASOS has come under scrutiny after scrapping diversity targets as incentives for its executives to achieve bonuses, signifying a growing view of diversity as non-essential.

Annual executive bonuses at the e-commerce platform will now be based on hitting profit targets, improving share prices, and increasing profit margins, scrapping diversity-driven targets altogether.

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Last year, the brand’s annual bonuses were based on revenue (15%), adjusted pre-tax profit (25%), adjusted free cash flow (35%), and ESG measures including diversity goals (25%).

However, these bonuses have since changed drastically, with 75% of bonuses being based on adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation), and the remaining 25% of bonuses based on targets for closing stock, adjusted gross margin and cost to serve.