[The Corner] “The Number Of European Companies Using ESG Criteria In Executive Compensation Has Increased Eightfold In The Last Decade”

The percentage of European companies linking executive compensation plans to ESG targets has increased more than eightfold in the last decade, from 4% in 2008 to 34% in 2020. This is according to a survey conducted by the Diligent Institute of nearly 2,000 companies in 15 European countries, including Spain, which is in the high end of the range for most indicators.

According to the survey, the sectors in this sample with the greatest sensitivity to including ESG metrics in remuneration criteria are Energy and Utilities, with 59% and 65%, respectively, of the companies surveyed incorporating them into their plans. Meanwhile, the furthest behind is Health, limited to 22%.

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The Corner, Commentary, “The Number Of European Companies Using ESG Criteria In Executive Compensation Has Increased Eightfold In The Last Decade,” by Fernando Rodriguez