Category: Diversity & Equality
Latest research comes as shareholders pushback against compensation plans Latest research comes as shareholders pushback against compensation plans Latest research comes as shareholders pushback against compensation plans
Nov 23rd, 2021
More than half of companies in the FTSE100 tie executive pay to ESG measures, according to research by PwC, which also shows a slump in shareholder support for remuneration packages.
The accountancy giant found that 51% of constituents in the UK’s flagship benchmark included ESG measures in this year’s annual bonus requirements – up from 31% in 2020. The most common ESG metrics include health & safety in the materials sector, and risk and governance in the financial sector.
Notably, the number of companies integrating ESG considerations into long-term incentive plans doubled over the period, hitting 33% in 2021 compared with 16.5% in 2020. Carbon reduction and diversity targets are among the key metrics being used.
A separate report released this week by Sumitomo Mitsui Trust Bank and Deloitte Tohmatsu Consulting found an increase in Japanese companies using ESG indicators to help determine executive compensation.
A survey of 1,042 Ja…