Using ESG Performance for Incentive Compensation for Money Managers

A growing number of firms are incorporating ESG metrics in executive compensation contracts. These metrics could be valuable for contracting purposes to the extent that they can tell us something about the future financial performance that financial metrics are not able to tell us due to the limitations of accounting earnings and stock prices. Discover how the benchmark companies met stakeholder needs and improved financial performance by incorporating ESG metrics into their compensation plans. Learn about new measures of environmental targets, and how successful entities tied ESG performance to incentive compensation schemes.