Support for linking executive pay to ESG targets has become widespread across industries, but Tom Gosling, executive fellow at London Business School, warned companies should focus on cases “where it can really work”.
Speaking at Investment Week's Sustainable Investment Festival yesterday (15 June), Gosling explained the practice of linking pay to ESG targets has received significant support from investors and senior leaders alike - 68% and 55%, respectively. SIF 2023: Clients find sustainable investing 'utterly baffling' He said there were two differing reasons to apply such a practice, although both lead to the same goal of achieving long-term value for shareholders. One school of thought was companies should link ESG to pay because ESG was aligned with long-term shareholder value and, as such...
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