ESG & Incentive Pay

In this Vid-Guide, Semler Brossy’s Blair Jones and Pay Governance’s Mike Kesner explain the latest developments for ESG metrics for incentive pay, including:

1. Where do you even start? Do we have reliable data? Or are we not in a position to launch ESG incentive metrics yet?
2. Which investors are seeking this kind of thing?
3. Who is involved in the planning – is it a multi-disciplinary task?
4. How long does it take to design this?
5. What types of metric options are possible? Annual vs. long-term?
6. What about the degree of emphasis/weighting of ESG – “measured metrics”?
7. How do you evaluate which metrics are best for you?
8. How might you tweak your metrics over time? How do you evaluate if they’re working as intended?
9. What type of disclosures about the design might be disclosed outside of the proxy (eg. in a E&S report, on a E&S webpage, internally to employees)?