ESG and Executive Remuneration – Disconnect or Growing Convergence?

The last decade has seen a steady increase in the focus on Environmental, Social and Governance (ESG) factors from a range of stakeholders and that growing scrutiny appears to have reached a crescendo over the past 18 months. Only the topic of executive remuneration continues to be discussed as frequently as ESG. FTI Consulting & CGLytics have conducted an analysis to determine whether these two topics are increasingly converging. While there is evidence that the number of companies including some form of ESG-related measures in incentive plans has grown, the proportion of overall pay determined directly by performance against ESG criteria remains at the margin.