The Rise of ESG’s Importance in Executive Compensation Programs

ESG is everywhere. In the past 12 months, environmental, social and governance (ESG) topics have popped up in more and more proxy statements, compensation programs, and investor presentations. Even the Securities and Exchange Commission (SEC) is taking notice; they may propose new rules for the disclosure of ESG information. ESG seems ubiquitous, but some of the more pointed discussions on the matter are happening in compensation committees right now.

With our own clients, we see that ESG is a topic at nearly every compensation committee meeting. Companies that are not yet using ESG in pay programs want to (or wonder if they should), and those already with ESG want to update and refine. In either case, committees are actively working on it. READ MORE