The incorporation of environmental, social, and governance (ESG) metrics into executive compensation plans in European companies was the focus of our latest Diligent Institute report, Aligning Pay, Planet and People.
Our research suggests that the number of companies linking ESG metrics to executive compensation is on the rise. From 2008 to 2020, the average percentage of companies linking ESG metrics to CEO pay increased from 3% to 34%. The data suggests that French companies are leading the charge in Europe, with 74% of companies in the country including ESG metrics in CEO compensation plans. Countries such as Norway, Italy, and Ireland, meanwhile lag behind France, the UK, and the Netherlands.
Reba, Commentary, “The growing influence of ESG in executive compensation” by Edna Frimpong