Pinterest Pledges $50 Million on Reforms to Resolve Discrimination Allegations
According to court documents and the plaintiffs and company statements, Pinterest has pledged $ 50 million to repair its corporate culture and promote diversity as part of the agreement to address allegations of discrimination against women and people of color.
Rhode Island General Treasurer Seth Magaziner announced the settlement on Wednesday, following the retirement of Rhode Island’s employee retirement system and other Pinterest stakeholders suing a company known for its colorful virtual pinboards.
Stakeholders accused Pinterest’s board of directors of failing to respond to a culture of discrimination and revenge against women and people of color. By allowing discrimination to continue, stakeholders argued, the board has failed to act in the best interests of stockholders.
The allegations came after two black women members of Pinterest’s public policy team, Ifeoma Ozoma and Erica Shimizu Banks, publicly criticized the company’s treatment of employees, according to court documents.
Under the settlement, the board’s audit committee will help monitor changes aimed at creating equal opportunities for employees. The changes require that the board member act as co-sponsor to the CEO on diversification, equity and inclusion initiatives, according to the plaintiff’s legal team.
The settlement frees ex-employees from non-disclosure agreements and creates an external ombudsman office for employees and outsiders. Audit that reviews performance ratings, promotions and compensation in gender and ethnic categories.
The settlement was announced almost a year after Pinterest agreed to pay $ 22.5 million from its former CEO, Françoise Brougher, to settle a sex discrimination and retaliation lawsuit.
“We strive for these comprehensive reforms to support Pinterest’s employees in a fair and safe workplace and to strengthen the company’s brand and performance by ensuring that the values of inclusiveness are central to Pinterest’s identity.” The magazine said in a statement.
Pinterest said in a statement on Wednesday that it had “reached a resolution with certain stakeholders expressing concerns about the company’s culture last year and filing derivative lawsuits.”
“Since that time, we’ve been working hard to make sure our culture reflects our goals and values and today’s resolutions,” the company said.
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