Investors Expect ESG Metrics in Executive Compensation: IR Magazine Survey

IR Magazine has a new survey showing strong investor interest in executive compensation as an indicator of investment risk and return and in ESG metrics in incentive pay.

  • Just under seven in 10 investors consider executive compensation as part of their investment thesis.
     
  • Alignment of interests between management and shareholders is the key benefit investors see in linking executive compensation to company performance.
     
  • The most common challenge cited by investors in linking executive compensation to company performance is [purchase report to reveal data].
     
  • Approaching half of IROs have seen an increased investor interest in executive compensation over the past five years, while [purchase report to reveal data] percent of investors say they have spoken more about the issue with companies in this time.
      
  • A slight majority of companies have at least one board member speak to investors about executive compensation.
     
  • Nearly three quarters of investors expect executive compensation to be linked to ESG metrics.
     

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