The ESG and Executive Pay Issue Dividing the World’s Largest Investors

AQTION was recently featured in an article penned by Garnet Roach of IR magazine titled "Exclusive: The ESG and Executive Pay Issue Dividing the World’s Largest Investors".

In brief, the article covers AQTION’s inaugural “Stewardship in AQTION” report that reveals a stark division among the world's largest investors on the integration of environmental, social, and governance (“ESG”) criteria into executive pay packages. Of the top 65 global investors, only 34 publicly express a position on this matter. Surprisingly, just over half of these investors anticipate companies incorporating ESG metrics into executive compensation. The study, conducted by AQTION emphasizes the investors' preference for material, quantifiable, transparent, and challenging performance criteria when linking ESG metrics to executive pay. The article also highlights the growing trend of increased transparency among investors, with 25 out of the top 65 disclosing their rationale for votes. Finally, the findings provide insights for investor relations, emphasizing the importance of understanding investor preferences and tailoring their engagement programs accordingly.

The full article can be accessed using this link.