Through its research, blogs, and commentary, Farient is driving the conversation on executive compensation and governance issues.

April 29, 2021

Pensions and Investments – Move to link exec pay to ESG integration growing

Now in the second year of the COVID-19 pandemic, investors are raising expectations about companies’ responses to highlighted ESG issues such as diversity and, increasingly, connecting that to executive compensation.

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April 12, 2021

Agenda – ESG Metrics ‘Biggest Change to Comp Plans in Decades’

Chipotle Mexican Grill is one of several companies to introduce new environmental, social and governance (ESG) goals tied to top officers’ annual incentive compensation in the lead-up to this proxy season. At Chipotle, the goals relate to food and animals, people and the environment and will account for 10% of executive bonuses starting this year.

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April 9, 2021

Agenda – Pay Ratios Poised for More Scrutiny This Proxy Season

So far, median pay ratios at early-filing companies in the S&P 500 vary by industry, according to data from Farient Advisors. While the majority of companies have yet to file 2020 proxies, the materials sector and the consumer discretionary sectors have so far seen the biggest increases in pay ratios, with respective increases of 75% and 70% from 2019. Median information technology and health care sectors also saw respective increases of 43% and 17% from 2019. Median pay ratios declined 17% in the energy sector and 11% in the financial services sector.

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April 2, 2021

Corporate Secretary – Trying to tie executive compensation to ESG

ESG shareholder proposal

If certain ESG metrics have a material impact on a business’ performance – which is widely accepted – then it follows that investors, regulators and proxy advisers will likely seek assurances that executives are incentivized to meet expectations.

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March 30, 2021

Board Oversight of Stakeholder Strategies

By: RJ Bannister, Partner, Farient Advisors

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