Blogs

Linking Executive Compensation to Sustainability Goals

By Randi Morrison posted 12-03-2018 09:23 PM

  

Semler Brossy's "How to Tie Executive Compensation to Sustainability" explains how to approach incorporating company sustainability goals into executive incentive pay so as to achieve the best results for the business, investors, and the broader stakeholder group (e.g., society). Among other things, the firm recommends tying bonuses to "big" strategic sustainability opportunities or initiatives that will incentivize behavior to measurably advance the company's mission and its sustainability posture, subject to appropriate safeguards and due consideration for potential unintended consequences.

          See also our prior report: "ESG Metrics & Executive Compensation"; this CNN article: "Royal Dutch Shell is first energy company to link executive pay and carbon emissions," and these memos posted on our Sustainability page: "It's Time to Tie Executive Compensation to Sustainability," "Does inclusion of executive compensation metrics related to corporate social responsibility lead to long-term value creation?" and "Performance-Based Compensation and Corporate Responsibility."

          This post first appeared in the weekly Society Alert!

0 comments
156 views

Permalink