November 24, 2021
  • Pinterest will invest $50 million into DEI initiatives as part of a settlement with its shareholders, the parties announced Wednesday.
  • The company will also no longer enforce non-disclosure agreements when employees discuss mistreatment.
  • The shareholders claimed Pinterest breached its fiduciary duty by failing to respond sufficiently to discrimination allegations.

Pinterest is committing $50 million to diversity, equity, and inclusion reforms after a group of shareholders filed suit against its board following claims of a toxic environment for women and Black workers at the company. The terms of the settlement were announced late on Wednesday after market close.

As part of those reforms, the social image-sharing company will not enforce non-disclosure agreements for former employees who speak out about workplace mistreatment or harassment. Earlier this year, Pinterest said that it would no longer require outgoing employees to sign them.

Additionally, Pinterest will designate a member of its board to co-sponsor DEI initiatives alongside CEO Ben Silbermann and undergo audits twice a year to examine pay equity. The company will also set up an office, run by a third party, where employees can go for advice in pursuing complaints.

These measures come as a result of a settlement with three of Pinterest's shareholders — the Employees' Retirement System of Rhode Island, Stephen Bushansky, and Sal Toronto, a trustee of the Elliemaria Toronto ESA — who had filed suit against the company's board of directors last December, claiming that it breached its fiduciary duty by failing to respond sufficiently to discrimination allegations.

. . . 

Rhode Island's treasurer, Seth Magaziner, who acted on behalf of the state's employee retirement system, announced the settlement. The law firm Cohen Milstein Sellers & Toll PLLC represented both parties.

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