Should executive compensation support ESG?
ESG is in sharp focus, with an often-inconsistent combination of investor, employee, and customer interest. Boards have been struggling for years with the massive scope of "ESG" and what it means for their organizations.
We believe many are in a position to connect the dots by examining the non-financial metrics that directly correlate to their business and leadership strategies—and ultimately, determine if and how compensation plans that drive those factors should be a path forward.
We believe many are in a position to connect the dots by examining the non-financial metrics that directly correlate to their business and leadership strategies—and ultimately, determine if and how compensation plans that drive those factors should be a path forward.
ESG: It's Not What You Think
At the core of investor interest and scrutiny into environmental, social, and governance concerns is the long-term sustainability of an organization.
Guiding Board Discussions
What ESG Means for Organizations and Directors
Ask the Expert Interview
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How directors can define ESG in the context of their role in an organization.
Directors, Prepare for More: Tracking, Reporting, and Incentivizing DE&I
Research Report
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Survey data show boards are increasingly involved in matters relating to diversity, equity, and inclusion.
ESG and Executive Compensation: Four Discussion Points for Boards
Advisor Blog
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Most boards and management teams are at least talking about how they can manage ESG issues; here are considerations for incorporating them into pay plans.
The “S” in ESG: What Does the Data Say About Diversity and Inclusion in Executive Compensation?
Webcast
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A look at proxy data and new survey results that can help guide compensation committees as D&I becomes a regular and expected discussion on the agenda.
The Practicalities
In the Headlong Rush to Put ESG Metrics into Incentive Plans, We May Need a Speed Bump
Advisor Blog
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Consider several incentive plan principles before deciding if ESG-based metrics are right for your company.
Evaluating the Merits of ESG Metrics in Incentive Plans
Ask the Expert Interview
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An interview with Steve Van Putten about whether and how companies should include executive compensation incentive plan metrics related to ESG factors.
How Do We Have a More Productive Compensation Committee Conversation about ESG?
Webcast
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Directors need a framework in order to think through their company’s unique position relative to ESG factors.
Compensation Peer Group Development in an ESG World
Article
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Exploring the business case for including a company’s ESG impact in its peer group development
Thinking Boldly
The Compensation Committee’s Guide to Evaluating, Structuring, and Communicating Executive Incentives and Climate Issues
Article
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How do you structure a framework to include climate-related incentives in an executive compensation plan?
How Compensation Can Support Improved Environmental and Social Governance
Article
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For companies that want to strengthen their ESG focus and outcomes, incentive compensation programs can be a key to success.
The Unexpected Way Healthcare Organizations Can Make Beneficial Progress on ESG
Advisor Blog
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All aspects of ESG goal-setting and measurement should flow through the governance arm of the board.
Incentivizing ESG Progress in Private Companies
Advisor Blog
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It is possible to align elements of ESG with your business strategy and satisfy the interests of multiple stakeholders, including employees.
Straight Talk on ESG
Are Boards Talking About ESG?
Video
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Ep. 1: How much of the environmental, social, and governance discussion in the mainstream is taking place in the boardroom?
Why ESG Belongs on the Compensation Committee Agenda
Video
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Ep. 2: The compensation committee evaluates CEO performance, which increasingly includes responsibility for corporate culture and related issues.
Defining ESG
Video
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Ep. 3: What important issues already being tracked and measured in your company can be further defined as environmental, social, or governance-related?
Communicating ESG Priorities
Video
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Ep. 4: Determine the top-level concerns for your company and then tell a succinct and clear story about your organization’s position on these ESG objectives.
Gender Pay Issues are ESG Issues
Video
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Ep. 5: Addressing the gender pay gap and overall equality issues are good starting points for any company beginning to reward for ESG goals.