Issue link: https://digital.shearman.com/i/1512772
Shearman & Sterling LLP 107 | ESG Metrics in the Incentive Compensation Plans of the Top 100 Companies 36 26 of the Top 100 Companies include ESG metrics in a holistic qualitative review of individual performance of the Top 100 Companies include ESG as an individual metric 0 1 2 0 2 3 3 13 0% 25% 20% 15% 12.5% 10% 0% 5% Percentage not specified 62 of the Top 100 Companies incorporate ESG metrics into their executive compensation program ESG means different things to different companies. This is how companies that used ESG metrics defined ESG: 3 have ESG metrics that apply only to certain named executive officers or that are tailored for each named executive officer specifically reference a focus on diversity state that a focus on safety is a metric, down from 17 companies in 2021 and 12 last year that stated that increasing the health and safety of their employees was a metric 43 10 of these companies include them in their annual plan 54 in both their annual plan and their long-term plan 4 in their long-term plan only and in the performance scorecard used to calculate the employees' total incentive compensation. All 3 companies are in the financial sector. 1 3 ESG Metrics in the Incentive Compensation Plans of the Top 100 Companies Data Weighting of Individual ESG Metric