Why ESG Metrics Should be Measured on a 3-year Term

Many companies associate ESG with annual incentive cash plans. These plans usually include a portfolio of different priorities and goals–financial, operational, strategic. On the surface, ESG seems like a strategic or operational initiative, so it gets lumped into annual plans with everything else.

In this two-minute video, Jared Berman, Partner at Meridian Compensation Partners, argues that ESG compensation belongs in long-term incentive programs. Twelve months is simply not enough time for a company to determine which ESG metrics make sense, implement new policies and programs to support progress on ESG initiatives, and drive meaningful change through organizational behaviors and culture.