ESG Alert: Insights on ESG Performance Goals in Incentive Plans, Sustainability in Stressful Times, and the State of Renewable Energy in the US
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ESG Alert: Insights on ESG Performance Goals in Incentive Plans, Sustainability in Stressful Times, and the State of Renewable Energy in the US

July 08, 2022 | Newsletters & Alerts

   

ESG Performance Metrics in Incentive Plans: Lessons Learned

Last week, we held a Roundtable on ESG Performance Metrics in Incentive Plans, which was attended by 121executives 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, and how to measure the full impact of using these performance measures. As we prepare a summary of the key takeaways for participants and a report for publication, we want to bring a few insights to your attention.

  • We have seen only a modest increase in the percentage of S&P 500 companies tying CEO compensation to ESG performance in the past year, from 59 percent in 2020 to 63 percent for 2021 (as disclosed as of June 23). This suggests that companies are, indeed, proceeding cautiously in this arena, as discussed in our essay,

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