How ESG Metrics Are Taking Over Annual Incentive Plans

Suz Mac Cormac spoke to FT Agenda about the uptick in compensation committees at S&P 500 companies tying annual bonuses to measures beyond financial performance and more related to human capital. Regarding how safety measures have remained popular while diversity metrics have decreased, Suz noted that it doesn't necessarily mean companies are less committed to improving diversity, but the way these goals are articulated may have changed.

“You have goals on an annualized basis because you're not going to be able to do it overnight,” she said. “A lot of the stuff that has to be done is difficult and requires fundamentally changing operations.”

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