Case Study: Aligning Executive Compensation with Sustainability Goals

This presentation provides a comprehensive case study analysis of linking executive compensation to firm performance, incorporating environmental and social issue indicators alongside traditional financial metrics. It identifies key environmental indicators such as utility consumption, waste management, greenhouse gas emissions, and vehicle fuel use, and social indicators like employee benefits, engagement levels, customer complaints, retention scores, and net promoter scores. The presentation emphasizes the importance of these measures, highlighting how linking them to executive pay can drive positive impacts and ensure accountability for social and environmental concerns. Recommendations include adopting these measures alongside financial indicators and linking them to executive pay to align executive self-interest with the overall welfare of the firm. The analysis concludes that considering environmental and social issues is critical for a holistic assessment of firm performance and executive effectiveness.