ESG and Compensation’s Role

Environmental, Social, and Governance (ESG) issues are everywhere. Over the past 12-18 months, ESG has been mentioned in more and more proxy statements, compensation programs, and investor presentations.

With our own clients, ESG is a topic being discussed in nearly every compensation committee meeting. Companies that are not yet using ESG in pay programs want to, and those already with ESG want to make sure they are set up correctly. Either way, committees are actively working on it.

​​​​​​​Our latest paper looks at the part compensation can play in motivating executive teams and the entire firm to meet your corporate goals.  ​​​​​​​​​​​​​​​​​​​​​

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Compensation Best Practices

Eliminating the Seam

Performance and compensation are managed as two separate systems, run by two different teams, on two different calendars. Employees don’t see any of that. They see one question: did my work change my pay? When the answer is unclear, the entire performance cycle starts to look like ceremony, and the merit budget behind it gets spread further from where it was actually meant to go.

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