What percentage of executive compensation should be based on sustainability? (UN-PRI)
Videos about extreme climatic events ... 2012 (WRI) Ray Anderson and sustainable business logic (Esp, 2009, 15mn) The Story of Stuff (2007-10, several short) Home (ESP, 2009, 1h33mn) World According to Monsanto (ESP, 2008, 1h50mn) History Sustainable Business Sustainable Policies Go to Criterion
A recent UN report adds an extra element of conversation for investors in these times of corporate reporting: To what extent the executive compensation is linked to sustainability indicators? "Boards are exploring the possible orientations, and there is not a recognized pattern that allows guide them beyond the particular experiences.
At the global level and according to the report, outlet sport the Boards of Directors have begun to explore ways of integrating ESG parameters outlet sport (environment, social and governance) in the mechanisms of economic incentives. However, while emerging practices are taking outlet sport shape, there is no universally accepted guidance on linking outlet sport ESG metrics to executive pay.
Moreover, according to the study, there is no "one size fits all" regarding the integration of ESG metrics remuneration policies. Each company should determine their own metrics by their industry and their own particular circumstances. The report contains the testimony of 3 companies in the field
BHP Billiton, NAB and Stockland apply certain criteria in that regard. In BHP, 15% of short-term incentives for executives is based on a balanced scorecard of environmental, social and governance (ESG) parameters. However, long-term incentives are based on returns for the shareholders of the company without explicit ESG metrics.
In Stockland, that value is between 10 and 20%. National Australia Bank (NAB) "sets the level of the incentive to achieve short-term likely to cause a significant proportion of the total remuneration of the executive."
BHP Billiton has long used security as a key metric, predominantly on injury frequency rates, but last year scorecard for ESG indicators, including fatalities, major environmental incidents, risk management, HSE approved, assessment of the impact on human rights, environment outlet sport and health. outlet sport
Each year, the Sustainability Committee of the Board receives a detailed report outlet sport on business performance in health, safety, environment and governance and compensation committee reports to document their ratings.
"A key part of the development of BHP Billiton to improve its governance and its process metrics has been the growing relationship between the Sustainability Committee and Wages", the study example.
The control panel of the company's corporate responsibility outlet sport NAB currently includes the degree of customer satisfaction as well as their claims, outlet sport the growth of microfinance loans, diversity, turnover, carbon and chain contracts supply outlet sport complying with the principles of sustainability.
Both NAB and Stockland involving stakeholders to determine the criteria to be applied. The group performs inmobiliarioa customer surveys, involving local institutions and moniteorean customer feedbacks and comments and criticisms of media to determine the "importance" of these criteria. Also involve the management of the areas of Risk and Strategy to ensure that the indicators are aligned with corporate strategy.
The Stockland scorecard includes four major categories that weight being higher in the finance and business performance, the "business performance". The other factors are those related to stakeholders and customers, people and leadership and sustainability, health and safety.
However, recently it has been out of formulas related to the weighting of each factor as excessively prioritizes financial metrics relating to such factors. Individual assessment is now based on an assessment of the overall performance.
"For example, if an executive has a target that is linked outlet sport to health and safety in the workplace, and a serious incident in the previous model only represent 10% of the premium occurred. However, under the new scheme of the company, the bonus will be canceled due to performance evaluation in general. "
In fact, the report recommends that incentive compensation should be subject to
Videos about extreme climatic events ... 2012 (WRI) Ray Anderson and sustainable business logic (Esp, 2009, 15mn) The Story of Stuff (2007-10, several short) Home (ESP, 2009, 1h33mn) World According to Monsanto (ESP, 2008, 1h50mn) History Sustainable Business Sustainable Policies Go to Criterion
A recent UN report adds an extra element of conversation for investors in these times of corporate reporting: To what extent the executive compensation is linked to sustainability indicators? "Boards are exploring the possible orientations, and there is not a recognized pattern that allows guide them beyond the particular experiences.
At the global level and according to the report, outlet sport the Boards of Directors have begun to explore ways of integrating ESG parameters outlet sport (environment, social and governance) in the mechanisms of economic incentives. However, while emerging practices are taking outlet sport shape, there is no universally accepted guidance on linking outlet sport ESG metrics to executive pay.
Moreover, according to the study, there is no "one size fits all" regarding the integration of ESG metrics remuneration policies. Each company should determine their own metrics by their industry and their own particular circumstances. The report contains the testimony of 3 companies in the field
BHP Billiton, NAB and Stockland apply certain criteria in that regard. In BHP, 15% of short-term incentives for executives is based on a balanced scorecard of environmental, social and governance (ESG) parameters. However, long-term incentives are based on returns for the shareholders of the company without explicit ESG metrics.
In Stockland, that value is between 10 and 20%. National Australia Bank (NAB) "sets the level of the incentive to achieve short-term likely to cause a significant proportion of the total remuneration of the executive."
BHP Billiton has long used security as a key metric, predominantly on injury frequency rates, but last year scorecard for ESG indicators, including fatalities, major environmental incidents, risk management, HSE approved, assessment of the impact on human rights, environment outlet sport and health. outlet sport
Each year, the Sustainability Committee of the Board receives a detailed report outlet sport on business performance in health, safety, environment and governance and compensation committee reports to document their ratings.
"A key part of the development of BHP Billiton to improve its governance and its process metrics has been the growing relationship between the Sustainability Committee and Wages", the study example.
The control panel of the company's corporate responsibility outlet sport NAB currently includes the degree of customer satisfaction as well as their claims, outlet sport the growth of microfinance loans, diversity, turnover, carbon and chain contracts supply outlet sport complying with the principles of sustainability.
Both NAB and Stockland involving stakeholders to determine the criteria to be applied. The group performs inmobiliarioa customer surveys, involving local institutions and moniteorean customer feedbacks and comments and criticisms of media to determine the "importance" of these criteria. Also involve the management of the areas of Risk and Strategy to ensure that the indicators are aligned with corporate strategy.
The Stockland scorecard includes four major categories that weight being higher in the finance and business performance, the "business performance". The other factors are those related to stakeholders and customers, people and leadership and sustainability, health and safety.
However, recently it has been out of formulas related to the weighting of each factor as excessively prioritizes financial metrics relating to such factors. Individual assessment is now based on an assessment of the overall performance.
"For example, if an executive has a target that is linked outlet sport to health and safety in the workplace, and a serious incident in the previous model only represent 10% of the premium occurred. However, under the new scheme of the company, the bonus will be canceled due to performance evaluation in general. "
In fact, the report recommends that incentive compensation should be subject to
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