2021 and Beyond: Global Trends in Stakeholder Incentives

Nothing has changed the way we think about stakeholder interests more than the COVID-19 pandemic. People, governments and commercial enterprises across North America, Asia, Continental Europe, the United Kingdom, Australia and Africa have been challenged by uncertainty on both the financial and social levels. To that end, this year’s Farient/Global Governance and Executive Compensation Group (GECN Group) research, 2021 and Beyond: Global Trends in Stakeholder Incentives, focuses on the efforts of companies to incorporate the interests of all stakeholders in their executive pay plans.

To conduct the research, Farient and the GECN Group collected global data on incentives from the most recent public disclosures for companies in the following regions:

• • United States: S&P 100
  • Canada: TSX 60
  • Continental Europe: CAC 40 and DAX 30
  • Switzerland: SMI 20
  • United Kingdom: FTSE 100
  • Australia: ASX 100
  • Singapore: STI 30

The research draws on interviews with renowned corporate governance professionals, representing public company board members, impact investors and ratings agencies. These interviews reinforced our global experience that boards play a critical role in overseeing stakeholder policies, including developing the strategy, monitoring the culture, crafting the message and ensuring that executive and stakeholder interests are aligned. Recommendations for board members and executives include:

• • Keep a broad, global perspective
  • Help shape and listen for the “tone at the top”
  • Engage with investors on ESG and stakeholder matters
  • Restructure board processes
  • Consider how to incorporate ESG measures in incentives

We invite you to download the full report and gain more insight on the future of stakeholder agency, executive compensation and the five specific actions boards can take to position their companies for success in the quest for stakeholder value.

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