It’s Time to Tie Executive Compensation to Sustainability

Source : Harvard Business Review, 08/17/17

“As any compensation consultant will tell you, comp plans can address only so many metrics. Most plans have fewer than six: one or two financial metrics, such as sales growth or earnings per share, and two or three nonfinancial metrics, in areas such as quality or innovation. Having any more than that risks diluting executive focus. So for a compensation committee to justify a new metric, it needs to have a strong business case.

Fortunately, the business case for sustainability is broad, if not always easy to measure”

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