Executive Compensation in an Era of Stakeholder Primacy

Rising stakeholder expectations surrounding environmental, social and governance issues (ESG) are spilling into a growing corporate awareness of the need to address them. Though some companies have begun to demonstrate progress and commit to commendable goals on the issues — and make strides in integrating oversight at the board level — ESG has yet to become commonplace in executive compensation programs, seemingly the final step of solidifying corporate responsibility over the issues.

As corporations are increasingly seen as beholden to stakeholders beyond just shareholders, incorporation of ESG metrics in incentive programs represents an evolution towards substantiating this widening scope of responsibilities. 

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About the Author(s)

Kathryn Neel

Kathryn Neel is a managing director of Semler Brossy.


Olivia Voorhis


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