October 23, 2012
Linking Executive Compensation to Sustainability
– Broc Romanek, CompensationStandards.com
Recently, Glass Lewis published a report linking compensation to sustainability. Here is an excerpt from the blog about it:
Since 2010, Glass Lewis has reviewed this trend and has found a significant increase in the number of companies linking compensation to sustainability. For the 2012 edition of Greening the Green: Linking Executive Compensation to Sustainability, Glass Lewis reviewed the short- and long-term compensation plans disclosed by companies in their annual proxy filings. For this years’ report, we reviewed the constituents of indices in 11 global markets (S&P 100, S&P/STX 60, FTSE 50, S&P/ASX 50, IBrX 50, IBEX 35, CAC 40, AEX 25, OBX 25, SMI 20, DAX 30). We found that 42% of these companies provide a link between executive pay and sustainability, a considerable increase from two years ago, when only 29% of companies provided such a link.