Incentivizing What Matters: Designing Meaningful ESG Metrics for Executive Compensation


Environmental, Social, and Governance (ESG) considerations are impacting various facets of what investors and companies do, and this impact now includes executive compensation. Companies are beginning to incorporate sustainability into their corporate strategy and rethink the way executives are being incentivized.

In this paper, ISS Corporate Solutions’ (ICS) compensation and sustainability advisors teamed up to explore ESG metrics in executive compensation, using ISS data to:

  • Examine the current state of ESG metric utilization
  • Provide a framework for identifying material ESG factors

Offer practical tips on how to incorporate ESG factors into executive incentives

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