ESG or stakeholder incentives are becoming part of many executive pay plans. Whether it’s diversity, equity, and inclusion or reaching carbon-neutral goals, our team has built deep expertise in how ESG issues impact client strategies. Our ESG team is embedded in every client engagement. This accelerates an understanding of a client’s ESG positioning and enhances our ability to evaluate ESG performance, competitive positioning, and change processes to determine the right approach.
Listening to Stakeholders
Stakeholders are pressuring corporations to provide greater transparency and clearly disclose their commitments to ESG goals. Our team follows the shifting interests and priorities of stakeholder groups—investors, employees, consumers, and communities. To that end, each year we publish a global trends research initiative that examines all aspects of governance, board structure and composition, shareholder rights, and the increasing use of stakeholder incentives around the world. This provides our Farient and global GECN Group team with invaluable insights that we use to inform our decisions with clients.
This service includes:
Our Data Analytics Team (DAT) maintains an extensive database on global and U.S. ESG measures and trends in incentive practices. Company strategy, coupled with competitive practices, informs our decision-making and advice on stakeholder incentives.
Creating a diverse, equitable, and inclusive environment requires the right oversight and accountability. Our Data Analytics Team (DAT) continuously updates our data to provide the current information our clients need to set measures that result in accountability and progress.
Related case study
An ESG Trendsetter Continues to Excel
This global engineering services company has always been a trendsetter around environmental, social, and governance (ESG) initiatives. In the mid-2000s the company included an ESG 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’ ESG 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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