Agenda – Investors Scrutinize ESG-Linked Pay, and Some Say No Way
July 19, 2022
As more environmental, social and governance (ESG) goals have been linked to executive pay, investors have become more likely to closely examine pay packages that may involve “greenwashing” – potentially misleading information on these issues. In this Agenda article that cites recent examples, Farient data on Say-on-Pay votes is referenced to illustrate an energy company’s enhanced investor scrutiny in light of the shift toward consideration of ESG in compensation. The article discusses how companies can avoid these issues by using financially material metrics and by being transparent with shareholders.