Economic Times ·

IBM pays $17 million to settle DOJ probe on DEI-linked compensation

Demographic-linked bonus programs must be removed

Governance Big Tech
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Change
IBM agreed to pay $17 million and modify DEI programs after DOJ alleged bonuses tied to demographic targets violated federal law.
Why it matters
Compensation structures linking pay to demographic outcomes must be discontinued or revised to avoid enforcement.
Implications
  • — Compensation policies must change — compliance required
  • — Federal contractors face scrutiny — enforcement risk increases

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