Back to OurEnergyLibrary search




Pay for Climate Performance: Linking CEO Compensation to Emissions Reduction

Pay for Climate Performance: Linking CEO Compensation to Emissions Reduction

Full Title: Pay for Climate Performance: Linking CEO Compensation to Emissions Reduction
Author(s): Melissa Walton, David Shugar, Rosanna Landis Weaver, Danielle Fugere, Diana Myers
Publisher(s): As You Sow
Publication Date: September 28, 2022
Full Text: Download Resource
Description (excerpt):

Linking greenhouse gas (GHG) emissions targets to compensation is one important means by which CEOs can be incentivized to achieve timely and systematic progress on climate. This report is a first step in assessing how effectively companies are currently linking GHG emissions reduction incentives to CEO pay. The percentage of companies integrating ESG goals in compensation is rising rapidly as investors push for climate progress. In 2021, 52% of S&P 500 companies reported including ESG metrics in compensation while 69% of companies report they will be included in their 2022 compensation packages. While this indicates some progress, such generalized linkages are generally insufficient to drive climate progress. As more companies begin to link GHG emissions reduction to compensation, it is important that it be done in the most transparent and impactful way.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of OurEnergyPolicy.org, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

Sign up for our Press Release Distribution List

    Your Name (required)

    Your Email (required)

    Please sign me up to receive press releases from OurEnergyPolicy.org.