The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

December 16, 2020

How Executive Pay Drives Investor Trust

– Liz Dunshee

When it comes to building trust among your institutional investors, this recent report from Edelman shows that executive pay data can make or break you. Here are a few pay factors that 100 US investors said impact trust in a company “a great deal”:

– Having CEO pay ratio in line with those of peers – 72%, up 7% from last year

– Linking executive compensation to ESG target performance – 69%, up 17% from last year!

– Linking executive compensation to financial performance impacts trust in a company a great deal – 67%, up 1% from last year

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