ARTICLE
18 November 2021

ESG Continues To Find Its Way Into Incentive Compensation Plans

AO
A&O Shearman

Contributor

A&O Shearman was formed in 2024 via the merger of two historic firms, Allen & Overy and Shearman & Sterling. With nearly 4,000 lawyers globally, we are equally fluent in English law, U.S. law and the laws of the world’s most dynamic markets. This combination creates a new kind of law firm, one built to achieve unparalleled outcomes for our clients on their most complex, multijurisdictional matters – everywhere in the world. A firm that advises at the forefront of the forces changing the current of global business and that is unrivalled in its global strength. Our clients benefit from the collective experience of teams who work with many of the world’s most influential companies and institutions, and have a history of precedent-setting innovations. Together our lawyers advise more than a third of NYSE-listed businesses, a fifth of the NASDAQ and a notable proportion of the London Stock Exchange, the Euronext, Euronext Paris and the Tokyo and Hong Kong Stock Exchanges.
Although COVID-19 and its impact on business operations brought its own challenges to companies' incentive compensation programs, a review of 2020 proxies showed no slowdown of the incorporation of ESG metrics into plan design.
United States Employment and HR

Although COVID-19 and its impact on business operations brought its own challenges to companies' incentive compensation programs, a review of 2020 proxies showed no slowdown of the incorporation of ESG metrics into plan design.

In this chapter of our 19th Annual Corporate Governance & Executive Compensation Survey, we provide an overview of the forces that are driving an increased use of ESG metrics in incentive compensation plans, as well as action items for companies looking to incorporate ESG metrics into their incentive compensation programs.

Read "ESG Continues to Find its Way into Incentive Compensation Plans."

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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