Stakeholder Incentives

Sustainability Overtures

Stakeholder incentives have taken on increasing importance in executive pay plans. Our team has built deep expertise to address sustainability challenges, including carbon-neutral goals. Our sustainability practice is embedded in every client engagement. This accelerates our understanding of a client’s sustainability positioning and our initial evaluation of performance, competitive positioning, and change processes to determine the right recommendations

Listening to Stakeholders

Stakeholders are pressuring corporations to provide greater transparency and clearly disclose their commitments to sustainability goals. Our team follows the shifting interests and priorities of stakeholder groups—investors, employees, consumers, and communities. Each year, we analyze global trends and publish exclusive research that examines aspects of governance, board structure and composition, shareholder rights, and the increasing use of stakeholder incentives around the world. This research provides Farient and our Global Governance and Executive Compensation (GECN) Group with invaluable insights that inform our advice to clients.

This service includes:

Sustainability Benchmarking

We benchmark sustainability data. Our research team maintains an extensive database of US and global sustainability measures to stay current and forecast trends in incentive practices

Design of Sustainability-Based Incentives

We design customized incentive plans mindful of sustainability and stakeholder considerations, identify appropriate metrics and goals relevant to each client’s business and tied to long-term value creation

Board and Committee Oversight of Sustainability

We review appropriate oversight practices at the board and committee levels for various responsibilities concerning climate, sustainability, and other relevant issues

Sustainability Disclosures

We review sustainability, corporate social responsibility, and human capital management disclosures in view of investor and proxy advisor expectations

Sustainability Regulatory and Policy Research

We provide research and updates on government/regulatory, investor, and proxy advisor rules and policy developments from US and global perspectives

Related case study

  • A Sustainability Trendsetter Continues to Excel

    This global engineering services company has always been a trendsetter around environmental, social, and governance (sustainability) initiatives. In the mid-2000s the company included an sustainability modifier in its short-term incentive plan for a number of top executives. The company also wanted greater participation in the incentive program across the organization and measurable market alignment. Farient Advisors provided a review of competitors’ sustainability practices and developed a framework for modifying the client’s existing goals to provide a stronger link to the company’s long-term strategy for diversity and climate.

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Let us know how we can help you think differently about executive compensation and its alignment with performance.

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