Compensation committees at S&P 500 companies are increasingly tying annual bonuses to measures beyond financial performance. The inclusion of environmental, social and governance goals in short-term incentive plans has increased fourfold since 2019, according to data collected from proxy statements.
Experts say these nonfinancial metrics can serve as useful motivators as companies aim toward specific goals. However, transparency is key to prevent shareholders from feeling left in the dark.
…In 2022, 40% of the S&P 500 included at least one nonfinancial goal in their annual incentive plans. The overall number of metrics used to calculate annual bonuses has likewise increased — from 1,500 to over 2,300 — and committees are getting more creative with how they measure progress beyond revenue or earnings per share.
Departing Paramount Global CEO Bob Bakish's exit package is estimated to top $50 million, highlighting…
The pay gap between CEOs and their employees has widened over the past half decade,…
Chip maker Broadcom gave Hock Tan, its chief executive, a $161 million stock award, instantly…
Elon's Musk's $56 billion pay package's upheaval, a hedge fund sanctioned for failing to preserve…
Disclosures about directors' skills and expertise are increasingly coming under the microscope as investors ramp…
On Jan. 1, several of the nation's biggest companies — including Morgan Stanley, Kraft Heinz,…