Farient Briefings: Growth in ESG-Linked Comp Seen in Upcoming Research

November 27, 2023


Our Exclusive Analysis of ESG Leaders and Laggards Compensation Committees Caught in the Middle

Growth in ESG-Linked Comp Seen in Upcoming Research

Are environmental, social, and governance initiatives alive or dead? This question will undoubtedly continue to fuel debates. Recent articles and research suggest that the backlash against any corporate program perceived as “woke”—from climate change to diversity, equity, and inclusion under the banner of ESG—has had implications on both sides of the divide.

The overlap between ESG and executive incentivesi.e., stakeholder incentivesis the focus of annual research conducted in four of the last seven years by Farient Advisors and the Global Governance and Executive Compensation (GECN) Group, of which Farient is a founding partner.

In preparation for the 2024 Global Trends in Stakeholder Incentives report to be released in the new year, Farient researchers have been analyzing the adoption of such plans among companies around the world. New indices were added this year to capture comparisons among large-, mid-, and small-cap companies.

The results are illuminating. Rather than see a deflation in the ESG balloon, such measures are becoming more rigorous and specific. Greater refinement of ESG strategies to create longer-term shareholder value remains the pursuit. The challenge before companies is to demonstrate the link between ESG objectives and value creation.

How entrenched is the anti-ESG movement in the various regions of the world? That question is explored in the upcoming research along with the specific measures being used and the differences according to geography, company size, and sectors.

Also included in the upcoming 2024 report:

  • Prevalence of stakeholder measures globally and by sector
  • Types of stakeholder measures
  • Types of social vs. environmental measures
  • Company examples
  • Exclusive Insights from board directors and investors
earth as seen from the moon


For a recap of last year’s findings, please download the 2023 Global Trends in Stakeholder Incentives: The Staying Power of ESG.

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ESG Tracker™ Spotlights ‘Ambition’ at Dow

In a sign of the times, Farient’s ESG Tracker™ shows that Dow Inc. has replaced “ESG Metrics” with “Ambition Metrics” in its short-term incentive plan.

In The News

Boards See C-Suite Departures on the Horizon: Survey—Agenda

New research from Farient and Corporate Board Member titled “Turnover at the Top” highlights concern among boards that corporate culture has emerged as a key reason for high-level executive departures and a lever for retention of top talent. Agenda quotes Farient COO and Partner RJ Bannister on how boards can reduce turnover by focusing on talent and culture more than ever before.

Read more


What’s Next for ESG Investment—Pensions & Investments

Investor demand for linkage between executive pay decisions and corporate sustainability initiatives will continue to grow; however, transparency and proof of materiality remain ongoing challenges. Farient ESG Leader Brian Bueno offers his view of how investor ESG concerns show up in practice in this Pensions & Investments article.

Where to Find Us

NACD Directorship 100 Gala

Robin Ferracone D100

Congratulations to Farient Advisors Founder and CEO Robin A. Ferracone for her recognition in the 2023 NACD Directorship 100. The honorees will be celebrated at the NACD Directorship 100 Gala at Gotham Hall in New York City on the evening of December 13, 2023. For more information on the program, please contact us at info@farient.com.

About Farient Advisors 

Farient Advisors LLC is an independent premier executive compensation, performance, and corporate governance consultancy. Farient provides a full array of services, linking business strategy to compensation through a tailored, analytically rigorous, and collaborative approach. Farient has locations in Los Angeles, New York, and Louisville and works with clients globally through its partnership in the Global Governance and Executive Compensation (GECN) Group. Farient is a certified diverse company and is recognized by the Women’s Business Enterprise National Council.

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