Almost two thirds (60 per cent) of companies around the world are applying ESG targets to share-based employee compensation.
However, only 18 per cent of companies are applying ESG targets to both short- and long-term incentive plans, according to a survey by the Global Equity Organization.
An increasing number of shareholders are beginning to ask companies to make ESG a part of their business strategy. As a result, companies are making more granular, targeted ESG-based compensation plans, said Jason Kroft, partner at Miller Thompson.
