A Framework for Tying ESG Metrics to Executive Compensation Plans

Published: June 2021


As the importance of ESG metrics continues to rise, what key factors should companies consider before incorporating them into their executive compensation programs? This article highlights useful steps to take to ensure your business is prepared to evolve pay design.

Investors are looking beyond traditional measures of profit and growth, utilizing environmental, social and governance (ESG) performance measures to differentiate companies as alternative investments. The list of ESG areas of focus has grown to now include sustainability, climate impact, human capital management and corporate governance. Investors expect companies to identify key ESG areas of focus, as well as disclose current statuses, goals for improvement and overall progress.

Click here to read the full article.

General Disclaimer
The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Terms of Use
The contents herein may not be reproduced, reused, reprinted or redistributed without the expressed written consent of Aon, unless otherwise authorized by Aon. To use information contained herein, please write to our team.

Talk to an Expert

Let us know how we can help and a member of our team will be in touch shortly.

The Rewards Solutions practice at Aon and other Aon group companies will use your personal information to contact you from time to time about other products, services and events that we feel may be of interest to you. All personal information is collected and used in accordance with our privacy statement.

If you do not wish to receive these communications, please check here: