The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

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.

In celebration of Earth Day, we’ve launched a new site dedicated to ESG developments – Be among the first 422 people to sign up for the free daily blog and get a tree planted in your name.