As the use of ESG metrics in incentive plans continues to grow, we see a diverse set of models by which
companies incorporate these metrics. As with many ‘non-financial’ metrics, the use of ESG metrics within a ‘scorecard’ is a common approach, although this is certainly not the only solution.
We anticipate the evolution toward incorporating more weighted and prominent ESG structures into plan design to continue to grow in the coming years.
In this report, we analyze the reported design approach to incorporating ESG metrics into incentives within the S&P 500.
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Merit Budget and Employee Retention Survey
We conducted a pulse survey covering planned FY22 merit budgets and ongoing employee retention challenges and actions.
Diversity, Equity, & Inclusion Metrics in Incentives Across the S&P 500
Our research in 2021 indicates that 28% of companies included DE&I as a metric in executive incentive design. This report evaluates the level of specificity disclosed around DE&I metrics for a representative sample of those companies.
Diversity, Equity and Inclusion in Executive Pay
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Three Questions Compensation Committees Should Ask About ESG
What (if any) role should ESG play in their companies’ compensation plans, and if used, how should ESG-related incentives be structured?
Before You Look to Add DEI to Incentives…
How can a board member evaluate if DEI incentive metrics would be meaningful? As with any key initiative, the dialogue surrounding performance management can give clues as to what does or doesn’t make
The CHRO’s Critical Role in Times of Crisis
As a Senior Advisor on strategic issues related to executive talent, succession, and diversity and inclusion, in addition to leading the company’s COVID-19 response, Brodsky spoke with Blair Jones about a variety of themes critical to today’s corporate leadership.