Addressing sustainability issues is becoming more and more important for certain industries. Not only governments but also stock exchanges, major global investors as well as traditional banks, pension funds, and proxy advisors are increasingly pressuring companies to review their efforts in environmental, social and governance (ESG) topics. As a result, more and more companies are driving their sustainability agenda by integrating ESG criteria into their compensation strategy and, in particular, in their executive compensation systems.
Want to know more? Listen to the recording of ISSP's June 28th webinar where Claudia Wuerstle of HCM International presented on: Linking Executive Compensation to Sustainability & ESG Performance. Claudia described current market practices on the usage of specific ESG criteria in executive compensation systems and discuss different alternatives to reflect such criteria in "variable pay", the portion of employee compensation that is based on performance. Also, check the list of recordings available from previous webinars for more interesting topics.
ISSP, together with HCM International is doing a survey regarding the integration of ESG in variable compensation. Click here to participate in the survey. All survey participants will be provided with a copy of the report.
- CERES: Turning Point: Corporate Progres on the Ceres Roadmap for Sustainability (2018)
- HCM International: Pay-for-Sustainability: How to Reflect ESG in Modern Compensation Systems (2018)
- HBR: It is time to Tie Executive Compensation to Sustainability (2017)
- CERES Report: Blueprint for Sustainable Investment (2016)
- GreenBiz: Why tying CEO pay to sustainability still isn't a slam dunk (2015)
- CERES Report: Corporate Progress on the Ceres Roadmap for Sustainability (2014)
- Strandberg Consulting: Sustainable Pay: How TSX 60 Companies Compensate Executives for Sustainability Performance (2013)
- PRI: Integrating ESG Issues Into Executive Pay: Guidance for Investors and Companies (2012)
- WBCSD: People Matter Reward: Linking Sustainability to Pay (2010)
- The Conference Board - Sustainability in the Boardroom (2010)