Executive compensation
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Executive pay metrics in S&P 500 shift away from broad ESG criteria
Non-financial metrics now account for around 25 percent of short-term incentive pay at a typical Russell 3000 company, with financial measures making up the remaining 75 percent, according to new research. A report titled What Companies Reward: The Changing Mix of Metrics in Executive Incentive Pay, written by The Conference Board alongside ESGAUGE, FW Cook and Ropes & Gray, also found that in the S&P 500, the split is closer to 70 percent financial and 30 percent non-financial. A Harvard Law School article on the report, which examines 2023 through 2025 proxy filings, says boards are not abandoning non-financial measures…
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Tesla: How do you get support for a $1 trn pay package? Give shareholders a slice of the pie
ISS is recommending against Tesla CEO Elon Musk’s $1 tn compensation package. Glass Lewis too. CalPERS and NBIM, manager of the world’s most valuable sovereign wealth fund, have each come out publicly against. But with the Tesla AGM happening today online and at Tesla’s Gigafactory Texas, one small, family-run proxy advisory firm – whose ESG-skeptic voting guidelines are offered by ISS, and which boasted the $57 bn Texas Permanent School Fund as the first state fund to sign up – is backing Musk’s compensation. ‘We’re strongly focused on the alignment of incentives,’ says Jerry Bowyer, CEO of Bowyer Research, who…
