Should improved sustainability performance and CEO compensation be linked?

For the longest time, corporate sustainability targets have been great PR, but minimal action ensued. One of the big reasons for this was that the sustainability targets were solely the sustainability department’s domain and didn’t span across all operations. This is now changing.

Boards that believe in the operationalisation of ESG, incentives and executive pay need to be the catalyst. Including incentives based on ESG is a strong signal and can trigger the cultural change that embeds sustainability into the organisation.