ESG & Incentive Pay
June 7, 2021 •
Our guests – Semler Brossy’s Blair Jones and Pay Governance’s Mike Kesner – explain the latest developments for ESG metrics for incentive pay, including:
- Where do you even start? Do we have reliable data? Or are we not in a position to launch ESG incentive metrics yet?
- Which investors are seeking this kind of thing?
- Who is involved in the planning – is it a multi-disciplinary task?
- How long does it take to design this?
- What types of metric options are possible? Annual vs. long-term?
- What about the degree of emphasis/weighting of ESG – “measured metrics”?
- How do you evaluate which metrics are best for you?
- How might you tweak your metrics over time? How do you evaluate if they’re working as intended?
- What type of disclosures about the design might be disclosed outside of the proxy (eg. in a E&S report, on a E&S webpage, internally to employees)?