Il viaggio degli ESG nella remunerazione manageriale: trend e proposte

This paper examines the use of ESG performance metrics in executive compensation policies. We first document on the basis of the more authoritative surveys that a growing fraction of publicly traded companies, mainly in Europe and US, now incorporate ESG metrics in the compensation schemes of their top executives. Our analysis links the growth of these metrics to firm fundamentals, to the regulatory framework as well as the influence of institutional shareholders. Our findings also suggest that the adoption of some improvement in materiality of ESG metrics in managerial performance scorecard could be accompanied by improvements in ESG performance and more meaningful changes in the compensation of executives. Therefore we recommend some questions to Boards and to Remuneration Committees in order to improve the link between sustainable value and ESG pay linked.