ESG Performance Metrics in Incentive Plans
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ESG Center Roundtables

ESG Performance Metrics in Incentive Plans

June 30, 2022 02:00 PM ET - 04:00 PM ET | Virtual Meeting

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Publication: Linking Executive Compensation to ESG Performance

Summary

Last autumn, The Conference Board reported that just over half of S&P 500 companies were tying their CEO’s compensation to ESG performance goals. At the time, we urged that companies proceed cautiously and carefully assess the incremental benefits and costs of incorporating ESG measures into executive compensation, as discussed in our essay, ESG Metrics in Executive Compensation, and our webcast, Linking ESG Metrics to Executive Compensation: Virtue Signaling or Paying for Impact?, where a panel of experts discussed the key benefits and risks with linking ESG metrics to pay, how investors view this practice, and the pitfalls to avoid.

Since then, much has changed. More investors are expressing their views on the topic, and companies have now rolled out their compensation programs, gained experience in implementing the program through at least one (more) pay cycle, and learned about communication with executives and shareholders alike.

The Conference Board ESG Center held a Roundtable on ESG Performance Metrics in Incentive Plans attended by 121 compensation, ESG, sustainability, and governance executives from 72 firms. The discussion focused on the current trends in linking executive compensation to ESG performance, the lessons learned in the last two years, the ultimate goal(s) of ESG metrics in incentive plans, and how to measure the full impact of using these measures.

Report: September 2022

Participating in a Roundtable session is an exclusive benefit for our ESG Center Members. As with our other Working Groups and Roundtable discussions, this session was held under the Chatham House Rule to provide a forum for a truly candid and constructive conversation.

For more information

If you would like the key takeaways of the session or have any questions about this Roundtable or the ESG Center, please email ESGCenter@conference-board.org.

Sponsorship

This Roundtable is generously sponsored by Semler Brossy.

 

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Past Series Events

About the Series

A two-hour discussion held under Chatham House Rule with Members and experts on a key ESG topic.

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