Meridian Team
We have released the 2023 Meridian study of the use of ESG-related metrics in short- and long-term incentives granted to CEOs at S&P 500 companies. The analysis provides an executive summary followed by more detailed examination of E, S, & G respectively including:
- Prevalence of metrics
- Types of metrics
- Industry variations
- Other practices
Highlights
Here are some of our main findings:
- There was modest increase in overall prevalence (68% to 73%) of companies incorporating one or more ESG metrics into the STI and/or LTI incentive awards granted to their CEOs
- Usage of one or more ESG metrics is common across all industry sectors – predominantly in STI
- Only amongst Utilities are ESG metrics a majority practice in LTI (mostly environmental metrics)
- Social metrics are by far the most common category of ESG metrics (66%), more than double either of the other two categories
- Among top 10 ESG metrics 7 are Social, 2 are Environmental and 1 Governance
- Actual or implied weighting of ESG metrics remains low, typically 5% – 15%
Download Insight as PDF for the full study.
The analysis is based on data provided by ESG data analytics firm ESGAUGE.