Bonus boon for sustainability: Tying ESG targets to exec pay is here to stay

Bonuses need a rebrand

The word bonus has become synonymous with bankers.

Just last week the TUC released research showing bankers' bonuses in the UK have doubled since the 2008 financial crash - up to an average of £20,000 per year. But it is not solely bankers who receive bonuses. Across the private sector in the UK, year-on-year wage growth (including bonuses) was 5.4% in 2021. Regardless of personal opinion on this topic, increasingly ESG scrutiny is turning to remuneration - particularly of executives. Mixed assets only ESG funds to keep money in volatile markets Some analysts will look at the ratio of chief executive pay to the lowest paid emplo...