Farient Briefings May 2024: The Impressive Rise of Climate Goals in Executive Compensation

May 29, 2024

The Impressive Rise of Climate Goals in Executive Compensation

 

Commitment to goals matters. A case study on Mastercard’s stakeholder incentives shows the extension of an environmental, social, and governance (ESG) modifier to all employee bonus plans globally—i.e., not just for executives. The expansion in 2022 was intended to encourage everyone to work together toward a common set of goals.

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In the News

 

Musk Effect Drives Spread of Supersize CEO Pay PackagesThe Wall Street Journal

Farient ESG Leader, Brian Bueno, discusses the rise in “moonshot awards” for Elon Musk and other high-profile CEOs. Tesla’s 2018 CEO compensation package aroused controversy over its sheer size, but it’s among many examples of such “moonshot awards” that hold out the promise of huge payouts for meeting specific performance goals.

 


In Case You Missed It

 

Microsoft’s Nadella Tells Staff to Make Cybersecurity Top Priority: Ties Some Executive Pay to Security Milestones—Bloomberg

A series of new anti-hacking initiatives at Microsoft Corp. includes basing a portion of senior executives’ compensation on meeting cybersecurity milestones and adding cyber chiefs to its product groups.

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Op-ed: How Activist Investors are Deactivating with Proxy Battle LossesCNBC

Yale governance leaders Jeffrey Sonnenfeld and Steven Tian write in an op-ed that defeat after defeat this proxy season for activist investors—particularly in their campaigns at Disney and Norfolk Southern—raises the question: “Are activist investors increasingly getting deactivated, losing their credibility and power?”

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Where We’ll Be

 

10th Annual Meeting of the Global Governance and Executive Compensation (GECN) Group

Farient joins our GECN Group partners from five continents in Toronto, Ontario. Thank you to our Canadian partner, SouthLea Group, for hosting.

June 14-17

Toronto, Ontario, Canada

 


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, Louisville, and London 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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