April 22, 2021
Large Investors Are Adding “Sustainability” to Executive Pay Voting Frameworks
– Liz Dunshee
This new 49-page analysis (download required) from SquareWell Partners looks at how proxy advisors & large investors are evolving their approach to climate change. Here are the key takeaways on executive pay (also see the table on page 18):
Half of the world’s 30 largest investors have incorporated sustainability considerations, including climate change, into their evaluation of executive pay frameworks. Some examples include:
– Allianz Global Investors’ Global Corporate Governance Guidelines (pg. 14) say that they will look for the integration of material ESG issues in incentive plans.
– As part of its assessment of the robustness of company’s climate risk governance, J.P. Morgan Asset Management’s policy (pg. 2) says it will look at whether executive pay has been linked to environmental metrics.
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