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Alphabet faces pressure over diversity at shareholder meeting
Alphabet became the latest tech company to face a grilling at its annual general meeting this evening, with investors tabling proposals to get Google's parent company to tie pay to diversity.
The measure, which was backed by employees, would have meant Alphabet would have had to consider a number of metrics in its incentive plans, including those linked to diversity and inclusion.
Although the proposal was voted down – an expected outcome given Alphabet management effectively control the company – it provided a platform for shareholders and employees to vent their frustration with the business.
Google software engineer Irene Knapp, who presented the proposal at the meeting on behalf of Zevin Asset Management, said: "At Alphabet, diversity and inclusion activities by individual contributors have been met with a disorganised array of responses, including formal reprimand.
"The chilling effect...had impaired company culture."
In response, Alphabet chairman John Hennessy said the board would be considering more diverse director candidates, while HR chief Eileen Naughton said the company was seeking to increase its proportion of black, Latino and female workers.
The backlash comes just three months after reports emerged that US employees at Google had organised a group to put forward a set of policies to managers, including providing greater protection to employees being bullied at work.
Reuters had said around 100 employees were involved in the effort.
Last summer, Google was at the centre of a row about diversity, after it fired one of its computer engineers for "perpetuating gender stereotypes".
He had distributed a 10-page manifesto claiming initiatives to encourage women to pursue careers as programmers were "unfair" and had accused Google of "political bias".
The decision to fire him had been a flashpoint for conservatives and had led some to voice concern about whether this would restrict employees from expressing viewpoints.
Google has, historically, been known for its "open communication culture", in which it encourages employees to speak out about their concerns or ideas, although they have rarely done so in such a public format as an AGM.
The criticism of Alphabet follows similar shows of discontent at rival tech companies over recent weeks, with Tesla yesterday facing down attempts to strip Elon Musk of his chairman post and a number of reforms having been put forward by shareholders at Facebook's meeting, such as increased content oversight, all of which were rejected.