Executive Pay Under Scrutiny from ESG KPIs & Financial Performance

An article published in L'Economia - Corriere della Sera, reports some of the key findings of Morrow Sodali's Institutional Investor Survey 2021, in particular, that climate change and ESG (Environmental, Social and Governance) risks and opportunities play an increasingly important role in the investment decisions and the evaluation of portfolio companies during the past 12 months.

Fabio Bianconi, Senior Director at Morrow Sodali, comments: "In general pay-for-performance continues to dominate as a key pressure point for investors, in both short and long-term incentive plans, where a weighting for ESG metrics and targets between 5% and up to 25% is most supported. However, 63% of investors surveyed," adds Bianconi, "considers KPIs transparency, linked to financial performance, as most relevant." 

Download the full article (in Italian).