By Mak Yuen Teen
I am delighted to release my latest report on integrating ESG factors into executive remuneration, published in collaboration with Sustainable Finance Institute Asia (SFIA) and CPA Australia. This inaugural report includes an extensive survey of academic and practice research in the area of ESG and executive remuneration, and the implications of this research for practice.
The report proposes 10 questions that remuneration committees and boards should consider when deciding whether and how to link ESG factors to executive remuneration. Each section contains a “In a Nutshell” writeup which summarises the key takeaways from that section. The report also includes short case studies of how some companies are implementing this practice, which provide lessons on implementation issues that companies have to consider. Companies that have decided to link ESG factors to executive remuneration should also be mindful of investors’ expectations on disclosure and transparency.
This report is the first in a new series called FORESIGHT, aimed a bridging research and practice in ESG. The series brings together a group of active researchers with expertise in different areas of ESG, and who are also highly knowledgable and involved in practice in the area. Future reports will deal with topics such as climate risk, ESG issues in supply chains, legal implications of ESG, ESG disclosures and reporting, etc. I will serve in an editor’s role in this series, while also authoring the occasional report.
I would like to thank SFIA and CPA Australia for partnering on this initiative.
The inaugural report can be downloaded from this link:
