DATE PUBLISHED: NOVEMBER 8, 2023
The use of sustainability-linked targets in executive compensation schemes continues to spread among U.S. and European companies.
ESG targets represent a growing percentage of overall pay opportunities for executives in both short-term long-term incentives. However, many questions remain over transparency, their effectiveness and how and when they are used.
In this report, ISS-Corporate examined sustainability incentive trends in the U.S. and Europe to show how they have progressed since our previous report in 2021 and to explore common hurdles to building effective performance metrics that align executive incentives with sustainable long-term value creation.
