Each year, Guerdon Associates’ GECN Group publishes its research report on global trends on the use of environmental, social and governance plus other non-financial (ESG Plus) measures in global executive remuneration. The research shows that the prevalence of ESG measures in incentive plans continues to increase, likely in response to pressure from institutional investors, regulators and activists.
We expect to see more companies linking performance on material ESG matters to remuneration to build credibility of publicly disclosed ESG commitments and ensure executives will be focused on their achievement.
In this regard, we leverage our expertise in ESG topics and engagement to help boards select appropriate ESG metrics and targets that are consistent with the organisation’s purpose, sustain shareholder value, can be long lived, and are sufficient for most investors that ESG concerns are being adequately addressed.
See our past research HERE.