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KPMG in Germany

KPMG in GermanyNadine-Lan Hönighaus Global ESG Governance Lead KPMG International and Partner

Linking sustainability metrics to board members’ pay

A company’s strategic course is set by its management, yet it is these managers who must help ensure that this course is adhered to in their daily decisions. An effective way of providing them with further incentives to stay on course is to anchor the company’s sustainability targets in their remuneration, in the same way as other strategic aims. Consequently, linking strategic priorities to the key governance setup of a company remains an aspect of utmost importance to stakeholders, particularly investors. Remuneration is one strategic pillar of a robust governance model. For this reason, the management board pay system is…
April 2, 2025