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Reports Highlight Benefits and Challenges of Linking Executive Pay to ESG Factors
March 10, 2023Over the last three years, PwC and the Leadership Institute at the London Business School have studied the prevalence and efficacy of linking executive pay to ESG-related goals or targets. Their first two reports—Paying well by paying for good, on the “academic evidence around ESG in pay” (published in 2021), and Paying for good for all, on investors and senior leaders’ “expectations and experience of linking pay to ESG” (published in 2022)—found that investors and executives overwhelmingly support linking pay to ESG-related targets, with 82% of senior leaders (most commonly leaders of U.S. public companies) having ESG targets as part of their compensation.
