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…