As business strategies incorporate climate targets and plans, so too should the approach taken to incentivise the executive team to deliver them. Investors increasingly expect climate transition plans to be incorporated into executive compensation frameworks. While some companies have started to bring climate or ESG performance targets and indicators into executive compensation schemes, it’s still a fairly new subject and will depend on the context of the business and its levels of ambition.
The role of the Remuneration Committee Chair: Defining KPIs for the ‘E’ in ESG
As companies publish their carbon reduction targets, investors increasingly expect Remuneration Committees to take these targets into account when incentivising the executive. Our webinar, in partnership with Fidelio, explored the role of the Remuneration Committee in translating carbon and environmental targets into meaningful KPIs.
Paying well by paying for good
PwC and London Business School’s “Paying well by paying for good” study found that the use of ESG measures in executive pay plans is now widespread.
Environmental, Social and Governance measures and their increasing use in incentive plans
The continued push from stakeholders for better reporting on ESG factors has begun to influence incentive design. FIT Remuneration Consultants is now seeing a progression in the use of ESG performance measures in annual bonuses and, to a lesser extent, long-term incentives, as summarised in this executive briefing document.
Remuneration Committee update – considering ESG and climate change
The Deloitte Academy looks at how remuneration committees can support wider board action on ESG and climate change.