Updating its prior study in March, which we reported on here (see “Equilar study”), Equilar reported that 44 of the Fortune 100 disclosed in their 2021 proxies the incorporation of 62 ESG metrics into their executive incentive plans, with all but one of those metrics being incorporated into annual incentive plans and seven applicable only to post-2020 compensation. Based on the updated analysis, diversity-related metrics account for nearly one-fourth of all metrics used; human capital metrics account for another 18%:
The post provides examples of companies that included diversity metrics as part of a broader strategic initiatives scorecard (Allstate) and as a downward modifier to the management incentive plan (CVS), as well as companies that included environmental metrics (Verizon, Northrop Grumman, and Dow Inc.)
Access additional resources on our Executive Pay page »Non-Financial Metrics (Sustainability, DE&I, etc.) and Surveys/Studies.
This post first appeared in the weekly Society Alert!