Wealth Disparity and Excess Compensation

Aligning Compensation: An investor brief on fair pay and income inequality

More attention needs to be paid to ensuring corporations recognize and reward the value provided by rest of the workforce. This brief from SHARE highlights how often employee performance is overlooked when considering the contributions that a well-compensated CEO provides. The report also looks at ways to elevate the place of the workforce within listed corporations so that boards, executives, and investors can ensure that employees are incentivised.

Is it Time to Integrate EESG into Executive Compensation?

There is a growing number of shareholder resolutions requesting the adoption and disclosure of environmental, employee, social, and governance factors into executive compensation. This article will help you to understand why the inclusion of EESG criteria into executive compensation programs is an irreversible trend. It explores key obstacles and opportunities and how to navigate them, and provides advice from global directors and executives who have integrated - or are in the process of integrating - EESG into their compensation plans.

This resource is part of the Salzburg Questions for Corporate Governance series by the Salzburg Global Corporate Governance Forum, and was informed by insights from the Driving Accountability: Integrating EESG into executive compensation program.

The "COVID Cut" is Not Enough: Addressing the Negative Social Impacts of Excessive Executive Compensation

This article explains how COVID-19 cuts to executive pay (taken at the base salary level) are a hollow gesture - instead, excess pay to leaders requires wholistic compensation reform to better re-allocate capital. This resource will help you to be understand the capacity of investors to create equitable change around compensation.

Integrating ESG issues into executive pay

This comprehensive paper from UN-backed Principles for Responsible Investment initiative and Global Compact LEAD (a leadership platform within the UN Global Compact) facilitates discussions between a diverse group of institutional investors and companies to identify the rationale, feasibility, and effectiveness of corporate practices, which include environmental, social, and governance factors within executive management goals and incentive schemes. The main objective of the resulting guidance is to support and enhance the investor-company dialogue on these practices by explaining major opportunities and challenges, as well as practical examples. This document provides a tangible engagement tool to guide dialogue between shareholders and investee companies on this topic.