Nadine-Lan Hönighaus Global ESG Governance Lead KPMG International and Partner - ESG Foundation https://esgfoundation.org/category/nadine-lan-honighaus-global-esg-governance-lead-kpmg-international-and-partner Environmental, social impact and corporate governance Wed, 02 Apr 2025 00:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.3 Linking sustainability metrics to board members’ pay https://kpmg.com/xx/en/our-insights/esg/sustainabilitys-impact-on-boardroom-pay.html#new_tab?utm_source=rss&utm_medium=rss&utm_campaign=linking-sustainability-metrics-to-board-members-pay&utm_source=rss&utm_medium=rss&utm_campaign=linking-sustainability-metrics-to-board-members-pay Wed, 02 Apr 2025 00:00:00 +0000 https://esgfoundation.org/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 a key aspect of corporate
governance for a company’s shareholders. With this overview of 375 companies
from 15 countries, we take stock of the integration of sustainability criteria into board
members’ pay, finding that an impressive 78 percent of these companies already do
so. We hope this report can serve both as an inspiration and a contribution to debates
within companies and between stakeholders.

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