Chipotle ties executive pay to diversity and sustainability goals

Starting this year, 10% of executive compensation plans will be linked to progress toward the chain’s larger vision around diversity and the environment.
Photograph: Shutterstock

Chipotle Mexican Grill on Thursday announced that 10% of its executive compensation plans will be “directly tied” to ongoing diversity and sustainability goals.

Among those multi-pronged goals are:

  • Accelerating the promotion of field organization and support center workers to “next-level roles”
  • Increasing transparency around carbon emissions and environmental impact
  • Increasing the pounds of organic, local and/or regeneratively grown and raised food used in restaurants each year

Starting this year, Chipotle’s executive leadership team will be evaluated on their progress toward the company’s larger goals.

“We are passionate about inspiring real change in people, food and the environment every day,” said Laurie Schalow, chief corporate affairs and food safety officer, in a statement. “The new compensation plan ensures our leaders continue to set the right example for our more than 88,000 employees while fulfilling our mission to drive change and cultivate a better world.”

Chipotle joins other chains that have made similar moves in recent months.

Last month, McDonald’s, which is facing mounting charges of discrimination by franchisees, said it would tie executive bonuses to the hiring of women and people from underrepresented groups. The burger giant said it would increase the percentage of historically underrepresented groups in leadership roles to 35%, from 29%, by 2025.

In October, Starbucks said it would tie corporate diversity to executive compensation, with the goal of having at least 30% of corporate workers who identify as Black, Indigenous or people of color by 2025.

This week, restaurateur Danny Meyer said in an interview that his biggest business mistake has not been fully realizing issues of racism in the restaurant industry.

“Having spent my entire career in business truly as a non-racist has been one of the biggest mistakes I’ve ever made,” Meyer stold the Washington Post in a livestreamed event. “The difference between being non-racist and being anti-racist is the difference between night and day.”


Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.


Exclusive Content


BK franchisee Carrols goes from tragedy to triumph

The big Burger King franchisee has overcome a pandemic, inflation, questions about its future and the death of multiple executives to become the industry’s best turnaround story of 2023.


Who's on your fantasy restaurant-management team?

Reality Check: Why bother with fantasy football when the ideal virtual C-suite is waiting to be picked? Here's my roster.


Veggie Grill evolves the menu to keep pace with plant-based trends

Behind the Menu: Since the fast casual’s start in 2006, many new meat and dairy alternatives have come to market and consumers’ health perceptions have changed. Veggie Grill has been forced to change too.


More from our partners