Tying some amount of executive compensation to a company’s ESG performance has become more common among U.S. public companies over the last generation, Adam B. Badawi and Robert Bartlett write in a new paper.

But ESG-related pay remains a very modest part of total CEO pay and is awarded with unusually high frequency, find Badawi, a professor at UC Berkeley School of Law, and Bartlett, a professor at Stanford Law School, in their article “ESG Overperformance? Assessing the Use of ESG Targets in Executive Compensation Plans,” available on www.ssrn.com. READ MORE