Glass Lewis Publishes Greening the Green 2012: Linking Executive Compensation to Sustainability
Executive compensation has arguably been the most controversial issue facing companies over the last several years. Through say on pay votes, investors have gained tremendous influence over the pay packages awarded to senior executives. A major focus of investors has been ensuring that executives are paid for long-term performance and that compensation plans are designed accordingly. At the same time, there has also been a surge of awareness around the importance of sustainability issues. These two hot topics – executive compensation and sustainability – are converging into one conversation. Glass Lewis’ Greening the Green provides the data, analysis and context for investors to further examine this area.
Since 2010, Glass Lewis has reviewed this trend and has found a significant increase in the number of companies linking compensation to sustainability. For the 2012 edition of Greening the Green: Linking Executive Compensation to Sustainability, Glass Lewis reviewed the short- and long-term compensation plans disclosed by companies in their annual proxy filings. For this years’ report, we reviewed the constituents of indices in 11 global markets (S&P 100, S&P/STX 60, FTSE 50, S&P/ASX 50, IBrX 50, IBEX 35, CAC 40, AEX 25, OBX 25, SMI 20, DAX 30). We found that 42% of these companies provide a link between executive pay and sustainability, a considerable increase from two years ago, when only 29% of companies provided such a link.
Greening the Green discusses the strength and types of the reported links between compensation and sustainability as well as potential reasons for the increase in the prevalence of companies employing links. In addition to our global analysis, we also take an in-depth look at companies the United States, reviewing EPA fines as well as the level of board oversight afforded to sustainability issues at S&P 100 companies. We also provide specific examples of companies in various markets that link compensation to sustainability through several case studies.
For more information regarding this report, send us an email. To purchase a copy, please contact Glass Lewis at firstname.lastname@example.org or submit a request through GlassLewis.com.
© 2016 Glass, Lewis & Co., and/or its affiliates. All Rights Reserved. This blog is for informational purposes only and is updated periodically to keep Glass Lewis' clients and other interested parties informed of current corporate governance developments and regulatory trends. The information contained herein should not be construed as legal or investment advice. Glass Lewis analyzes issues it believes may be of interest to its subscribers and makes recommendations as to how Glass Lewis believes institutional shareholders should approach such issues. While Glass Lewis may mention certain companies in its blog postings, Glass Lewis never comments on the investment merits of the securities issued by the subject companies. Therefore, none of the information posted through this blog should be construed as a recommendation to invest in, purchase, or sell any securities or other property. All recommendations stated herein must be construed solely as statements of opinion, and not as statements of fact, and may be revised based on additional information or any other reason at any time.
The information contained in each blog posting is based on publicly available information. While Glass Lewis exercises reasonable care to ensure that all information included in this blog is accurate and is obtained from sources believed to be reliable, no representations or warranties express or implied, are made as to the accuracy or completeness of any information included herein. In addition, Glass Lewis shall not be liable for any losses or damages arising from or in connection with the information contained herein or the use or inability to use any such information.
Glass Lewis expects readers of its blog possess sufficient experience and knowledge to make their own decisions entirely independent of any information contained in Glass Lewis’ blog postings. Subscribers are ultimately and solely responsible for making their own decisions. This blog is intended to serve as a complementary source of information and analysis for subscribers in making their own decisions and therefore should not be relied on by subscribers as the sole determinant in making decisions.