Incentivizing What Matters: Designing Meaningful ESG Metrics for Executive Compensation

This guide from ISS Corporate Solutions can help you better understand the growing trend of ESG metrics in executive compensation. It starts by providing key statistics on the prevalence and type of ESG metrics being used across sectors and geographies. It then explains how materiality assessment priorities should inform the selection of executive compensations metrics. Finally, it provides a set of practical tips for designing, measuring, and disclosing ESG metrics linked to compensation. The guide will be most useful to sustainability teams involved in assessing materiality, and boards of directors and HR teams involved in setting executive compensation.