American Bank removes references to Diversity, Equity, and Inclusion, as well as fair compensation policies
In a significant shift, U.S. Bank has removed references to diversity, equity, and inclusion (DEI) from its latest annual filing, a move that mirrors similar changes in other major lenders. This transformation is primarily due to increasing political and regulatory pressures, particularly under the Trump administration.
The bank's 2024 filing no longer includes language on pay equity compared to last year's document. The pledge to interview at least one woman or person of colour for all roles is also absent from the current filing. Furthermore, the bank no longer mentions processes to address any gender and racial pay inequities identified within its workforce.
These changes align with broader industry trends as companies respond to political climates. For instance, JPMorgan Chase rebranded its DEI program to "Diversity, Opportunity, and Inclusion" (DOI), focusing on equal opportunity rather than equal outcomes. T-Mobile ended its DEI programs in response to pressure from the Trump administration while seeking regulatory approval for major business deals.
The dilution or removal of DEI references in annual reports and public messaging is part of a more cautious and integrated approach to inclusion efforts. Companies are minimising public focus on "equity" aspects of DEI amid controversies and legal challenges surrounding such programs.
It's worth noting that U.S. Bank's president, Gunjan Kedia, who is both a woman and a person of colour, will become its next CEO as of April 15. This appointment underscores the bank's commitment to diversity at leadership levels, even as its public DEI language evolves.
In the past, U.S. Bank's filings provided detailed information about its DEI efforts, including periodic reviews of base pay across gender and racial categories with the assistance of an independent third-party consultant. Last year's document noted that 57% of the company's U.S. employees were women and 39% were people of colour. Additionally, 34% of employees at the bank's executive and senior management levels in the U.S. were women, and 21% were people of colour.
However, the current filing does not provide a breakdown of U.S. Bank's workforce by demographics, unlike last year's document. The three-paragraph section detailing DEI efforts, which was present in last year's 10-K, is absent from the current filing. "Flexible work" is no longer highlighted as an employee benefit, suggesting a possible change in the bank's work-from-home policy.
The bank's current filing does not include mentions of U.S. Bank company-sponsored business resource groups based on ethnicity, LGBTQ, veteran, or disability status. Capitol One has also scrapped its previous requirements for diverse rosters of candidates for job interviews and panels of diverse interviewers.
This shift in U.S. Bank's approach to DEI is part of a broader trend in response to political climate changes. The bank, like many others, appears to be taking a more integrated and less public-facing approach to inclusion efforts, emphasising equal opportunity over explicit equity language.
The bank's 2024 filing no longer includes its former commitment to conducting periodic reviews of base pay across gender and racial categories, a practice significantly visible in its previous annual filings. U.S. Bank's diversified business strategy now extends to finance, with an emphasis on prioritizing equal opportunity and downplaying explicit equity language in response to changing political climates, a trend that has also been observed in companies like JPMorgan Chase.
