US companies refine their approach to ESG metrics in executive pay programs, WTW study finds
WTW's latest global study reveals U.S. companies are refining their approach to ESG metrics in executive compensation, focusing on better business alignment. 77% of S&P 500 companies included at least one ESG metric in executive incentive plans, unchanged from last year but up from 52% four years ago. Despite recent DEI backlash, 57% of U.S. companies maintain DEI metrics, with 26 companies adding and 35 removing or planning to remove such metrics.
The study found that ESG metrics yield about 10% higher payout than financial metrics among S&P 500 companies, raising concerns about goalsetting rigor. Globally, 81% of companies use ESG metrics, with 77% implementing them in short-term incentives and 29% in long-term incentives. Human capital metrics remain most popular, used by 72% of S&P 500 companies and 73% globally.
Il più recente studio globale di WTW rivela che le aziende statunitensi stanno affinando il loro approccio alle metriche ESG nella compensazione dei dirigenti, concentrandosi su una migliore allineamento con le aziende. Il 77% delle aziende S&P 500 ha incluso almeno una metrica ESG nei piani di incentivazione per i dirigenti, invariato rispetto all'anno scorso ma in aumento rispetto al 52% di quattro anni fa. Nonostante il recente contraccolpo sulla DEI, il 57% delle aziende statunitensi mantiene metriche DEI, con 26 aziende che le hanno aggiunte e 35 che le stanno rimuovendo o pianificando di farlo.
Lo studio ha trovato che le metriche ESG producono circa il 10% in più di pagamento rispetto alle metriche finanziarie tra le aziende S&P 500, sollevando preoccupazioni sulla rigore nella definizione degli obiettivi. A livello globale, l'81% delle aziende utilizza metriche ESG, con il 77% che le implementa negli incentivi a breve termine e il 29% in quelli a lungo termine. Le metriche sul capitale umano rimangono le più popolari, utilizzate dal 72% delle aziende S&P 500 e dal 73% a livello globale.
El último estudio global de WTW revela que las empresas estadounidenses están refinando su enfoque hacia las métricas ESG en la compensación de ejecutivos, concentrándose en una mejor alineación con el negocio. El 77% de las empresas del S&P 500 incluyó al menos una métrica ESG en los planes de incentivos para ejecutivos, lo que se mantiene igual que el año pasado pero ha aumentado desde el 52% de hace cuatro años. A pesar de la reciente reacción negativa hacia la DEI, el 57% de las empresas estadounidenses mantiene métricas DEI, con 26 empresas que las han añadido y 35 que las están eliminando o planeando hacerlo.
El estudio encontró que las métricas ESG generan aproximadamente un 10% más de pago que las métricas financieras entre las empresas del S&P 500, lo que plantea preocupaciones sobre la rigurosidad en la fijación de objetivos. A nivel global, el 81% de las empresas utiliza métricas ESG, con el 77% implementándolas en incentivos a corto plazo y el 29% en incentivos a largo plazo. Las métricas de capital humano siguen siendo las más populares, utilizadas por el 72% de las empresas del S&P 500 y el 73% a nivel global.
WTW의 최신 글로벌 연구에 따르면, 미국 기업들이 경영진 보상에서 ESG 지표에 대한 접근 방식을 다듬어 비즈니스 정렬을 개선하고 있습니다. S&P 500 기업의 77%가 경영진 인센티브 계획에 최소한 하나의 ESG 지표를 포함하고 있으며, 이는 작년과 동일하지만 4년 전의 52%에서 증가한 수치입니다. 최근 DEI에 대한 반발에도 불구하고, 57%의 미국 기업들은 DEI 지표를 유지하고 있으며, 26개 기업이 추가하고 35개 기업이 이러한 지표를 제거하거나 제거할 계획입니다.
연구에 따르면, ESG 지표는 S&P 500 기업 가운데 재무 지표보다 약 10% 높은 지급액을 생성합니다, 이는 목표 설정의 엄격성에 대한 우려를 낳고 있습니다. 전 세계적으로 81%의 기업이 ESG 지표를 사용하며, 77%가 단기 인센티브에, 29%가 장기 인센티브에 이를 도입하고 있습니다. 인적 자본 지표는 여전히 가장 인기 있으며, S&P 500 기업의 72%와 전 세계적으로 73%가 이를 사용하고 있습니다.
La dernière étude mondiale de WTW révèle que les entreprises américaines affinent leur approche des métriques ESG dans la rémunération des cadres, en se concentrant sur un meilleur alignement avec l'entreprise. 77% des entreprises du S&P 500 ont inclus au moins une métrique ESG dans les plans d'incitation pour les cadres, ce qui reste inchangé par rapport à l'année dernière, mais a augmenté par rapport à 52% il y a quatre ans. Malgré le récent retour de bâton sur la DEI, 57% des entreprises américaines maintiennent des métriques DEI, avec 26 entreprises en ajoutant et 35 en retirant ou prévoyant de retirer de telles métriques.
L'étude a révélé que les métriques ESG génèrent environ 10% de paiements supplémentaires par rapport aux métriques financières parmi les entreprises du S&P 500, soulevant des préoccupations quant à la rigueur de la fixation des objectifs. Au niveau mondial, 81% des entreprises utilisent des métriques ESG, 77% les appliquant aux incitations à court terme et 29% aux incitations à long terme. Les métriques sur le capital humain restent les plus populaires, utilisées par 72% des entreprises du S&P 500 et 73% au niveau mondial.
Die neueste globale Studie von WTW zeigt, dass US-Unternehmen ihren Ansatz für ESG-Kennzahlen in der Vorstandsvergütung verfeinern und dabei auf eine bessere Geschäftsorientierung achten. 77% der Unternehmen im S&P 500 haben mindestens eine ESG-Kennzahl in ihre Anreizpläne für Führungskräfte aufgenommen, was im Vergleich zum Vorjahr unverändert bleibt, aber im Vergleich zu 52% vor vier Jahren gestiegen ist. Trotz der jüngsten Rückschläge im Bereich DEI behalten 57% der US-Unternehmen DEI-Kennzahlen bei, wobei 26 Unternehmen diese hinzufügen und 35 andere sie entfernen oder planen, sie zu entfernen.
Die Studie ergab, dass ESG-Kennzahlen unter den S&P 500-Unternehmen etwa 10% höhere Auszahlungen bringen als finanzielle Kennzahlen, was Bedenken hinsichtlich der Zielsetzung aufwirft. Weltweit verwenden 81% der Unternehmen ESG-Kennzahlen, wobei 77% diese in kurzfristigen Anreizen und 29% in langfristigen Anreizen umsetzen. Kennzahlen zum Humankapital sind nach wie vor am beliebtesten und werden von 72% der S&P 500-Unternehmen und 73% weltweit genutzt.
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NEW YORK, Dec. 16, 2024 (GLOBE NEWSWIRE) -- As environmental, social and governance (ESG) metrics become a common feature in executive incentive plans, U.S. companies are focusing more on setting metrics that are better aligned to their business priorities, according to a new global study by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. The annual study also revealed the prevalence of diversity, equity and inclusion (DEI) metrics remained relatively stable despite recent backlash against corporate DEI initiatives.
In the U.S., more than three in four S&P 500 companies (
Globally,
Human capital metrics remain the most popular ESG metric category, used by
“Despite some opposition on DEI goals and initiatives that some companies are experiencing, we see companies taking different approaches to DEI metrics,” said Kenneth Kuk, senior director, Work and Rewards, WTW. “While prevalence of DEI measures may continue to decrease amid pushback on corporate DEI initiatives, the remaining ones will better withstand scrutiny because these companies made a compelling case for why DEI helps drive business results and preserve long-term sustainable value for stakeholders. We would caution against only discussing human capital and DEI within the narrow context of ESG metrics in executive incentive plans given their broader business impact.”
WTW’s study also found that among S&P 500 companies, ESG and non-financial metrics tend to yield about
WTW’s study also included 311 companies across eight major indices in Europe and 193 companies across seven major markets in the Asia Pacific region.
The key findings from those companies include the following:
- Compared with the previous year, the prevalence of ESG metrics within executive incentive plans changed very little in Europe (
94% ) and Asia Pacific (74% ). - In Europe, nearly two-thirds (
64% ) use ESG metrics in LTI plans, an increase of several percentage points from the previous year. In Asia Pacific, just30% use ESG metrics in LTI plans.
“With the use of ESG measures in executive pay plans plateauing, we expect investors and boards to focus on the quality of ESG metrics and those that are most material and relevant to the business, ensuring that they are objective, measurable, and underpinned by a robust goalsetting approach,” said Kuk.
About the study
This research study reviews public disclosures from 500 companies listed in the S&P 500; the TSX 60 in Canada; eight major European indices, including the FTSE 100; and the largest companies across seven markets in the Asia Pacific region.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.
Media contacts
Ed Emerman: +1 609 240 2766
eemerman@eaglepr.com
Ileana Feoli: +1 212 309 5504
ileana.feoli@wtwco.com
FAQ
What percentage of S&P 500 companies use ESG metrics in executive compensation according to WTW's 2024 study?
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How do global ESG metric adoption rates compare to U.S. rates in 2024?
What is the most commonly used ESG metric category according to WTW's study?
