In today's corporate world, there's a lot of buzz about linking executive pay to Environmental, Social, and Governance (ESG) metrics. One specialist recently trumpeted: “Companies have crossed the Rubicon in integrating environmental, social and governance performance.” The idea does indeed sound great: reward leaders for steering companies toward sustainable and ethical practices. But are these ESG incentives genuine, or are they just for show?

A recent study we published, entitled "All Hat and No Cattle? ESG Incentives in Executive Compensation," attempts to answer this very question. The research delves into executive compensation data from 674 executives across 73 major European firms between 2013 and 2020. The findings are quite revealing. READ MORE