Boards-Impact-Forum
The board should ensure that executive incentives are aligned to promote the long-term prosperity of the company. The board may want to consider including climate-related targets and indicators in their executive incentive schemes, where appropriate. In markets where it is commonplace to extend variable incentives to non-executive directors, a similar approach can be considered.
Shareholders have increasingly highlighted the importance of measures of social and environmental sustainability as a key component of ESG. The COVID-19 crisis and growing focus on racial inequities will only accelerate the demand for companies to expand their definition of social responsibility to include the broader societal impact of the corporation. In recent years, debates […]
How CEO pay is set has been studied extensively, but most theoretical models do not capture whether real-world CEOs care about, for example, their reputation, fairness, or being appreciated by directors and investors. This column explores this using a survey of over 200 non-executive directors of FTSE All-Share companies and over 150 institutional investors in UK equities.
The COVID-19 pandemic and economic crisis highlight the importance of integrated corporate governance to translate stakeholder capitalism into practice.
Pressures on corporate boards to address environmental, social, and governance concerns are stronger than ever. The good news is that by investing in these areas even without an immediate commercial payoff, companies can bolster their long-term positions with both the stock market and society. Companies still need to make sure the ESG issues they tackle […]
