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