2022 Farient Global Research Shows Different Measures of Stakeholder Value

Resources are dwindling. From the inadvertent to the deliberate exploitation of climate, people, and the law, business globally is undergoing a dramatic transformation.

Around the world, investors are pressuring boards and management for greater accountability. Meanwhile, other stakeholders, including employees and the communities in which businesses operate, are demanding that corporations provide greater transparency and clearly defined commitments to environmental, social, and governance goals. Our newly published 2022 and Beyond: Global Trends in Stakeholder Incentives report provides insights into “stakeholder incentives” and identifies the measures that compensation committees are including in their executive pay programs to align pay and performance with pledges for carbon neutrality and greater diversity, equity, and inclusion (DE&I).

The 2022 and Beyond: Global Trends in Stakeholder Incentives report is based on an analysis of publicly disclosed information from more than 500 global companies to discern patterns in the use of stakeholder incentives and other corporate governance measures across industries and geographies.

This annual report, our fifth, is published by Farient Advisors in partnership with the Global Governance and Executive Compensation (GECN) Group, where Farient is a founding partner. This year’s research identifies the stakeholder measures that compensation committees are including in their executive pay programs to align pay and performance with pledges for carbon neutrality and greater diversity, equity, and inclusion (DE&I).

One of the report’s key findings is that companies are accelerating their ESG journeys as the value of corporations is redefined by governments, employees, investors, and society at large. Based on the analysis, the next frontier in corporate governance will likely be to assure that ESG claims can be sufficiently supported. Otherwise, such claims can themselves pose an ESG risk.

Download the complete global report here.

About Farient Advisors

Farient Advisors provides a comprehensive array of services to boards and management including compensation program design, performance measurement, goal setting and pay for performance alignment, board of directors’ compensation, stakeholder incentives (climate, diversity, equity, and inclusion (DEI), transactions (mergers and acquisitions, spinoffs, pre-IPO/SPACs), and shareholder communications. Farient has locations in Los Angeles, New York, Louisville, and Dallas and is a founding partner of the Global Governance and Executive Compensation Group (GECN), serving clients in more than 35 countries. Farient is recognized by the Women’s Business Enterprise National Council as a certified diverse company.