State-backed firm’s diversity drive branded ‘identity politics’

A State-backed uranium enrichment company is allowing its executives to make hundreds of thousands of pounds in bonuses a year by improving diversity within the business.

Urenco, a joint venture between the UK and Dutch governments has a bonus scheme that means executives could receive up to £700,000 each in payments for diversity and inclusion successes.

The British government owns a 33pc stake in Urenco, which was established in 1971.

According to the company’s annual report, 10pc of its long-term incentive programme is based on successes in promoting diversity and inclusion, with the yearly figure decided by its remuneration committee.

Urenco declined to say the exact figure paid to executives, but Daily Telegraph analysis of the scheme estimates that around £700,000 of bonuses could have been awarded since 2018 if the remuneration committee had given full points for diversity and inclusion to executives.

Matthew Lesh, of the Adam Smith Institute criticised the scheme, saying it did not provide a good use of taxpayer money.

“This is a bizarre programme. Taxpayer money should be spent rewarding people for the merit of their work – not for activities related to the colour of someone’s skin, gender or sexuality.

“Urenco should be entirely focused on the safe enrichment of uranium not playing identity politics.”

However, the approach was supported by a public sector-backed headhunter who specialises in hiring diverse candidates. Suki Sandhu, chief executive of Audeliss, which is currently leading the process to replace the Bank of England’s chief economist Andy Haldane said the scheme had a number of merits.

Mr Sandhu said: “As the weight of research shows, having diverse teams and inclusive cultures within an organisation increases innovation and productivity.

“Leaders have a business and moral duty to drive diversity and in an ideal world this should be enough. However, incentives can sometimes be one part – although not all – of the solution.”

A Urenco spokesperson said: “Diversity and inclusion is key for Urenco.

“To support this, several initiatives have been launched to ensure we are building an inclusive organisation and that equality and diversity are celebrated and valued.

“To incentivise change there is a diversity and inclusion element to the long-term incentive plan (LTIP) arrangements of our executive remuneration.”

‘Leaders have a business and moral duty to drive diversity and in an ideal world this should be enough’