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 scrutinize 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 Agenda article discusses how companies can avoid these issues by using financially material metrics and by being transparent with shareholders.
About Farient Advisors
Farient 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 (GECN) Group, serving clients in more than 35 countries. Farient is recognized by the Women’s Business Enterprise National Council as a certified diverse company.
Environmental, social, and governance (ESG) initiatives continue to be a hot-button issue for investors, stakeholders, and boards of directors, all of whom want a better understanding of what to measure and over what period of time. Our team has spent considerable time analyzing which companies use ESG measures and exactly what measures they are using.
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