Leading companies are now focusing their attention on three interlinked areas: environmental sustainability, people sustainability and corporate social responsibility.

The increased focus on employees as stakeholder was a feature that emerged last year and continues to persist in 2021. According to Mercer’s Global Talent Trends survey, 65% of HR leaders in Canada have continued or stepped up the pace towards environmental, social and governance (ESG) and multi-stakeholder business approach.


The shift toward greater empathy is filtering through all aspects of executive compensation. For executives, a new definition of performance should reflect:


  • An alignment of compensation to the experience of the broader workforce
  • An accountability for non-financial performance including sustainability, diversity, equity and inclusion (DEI) and other ESG factors

Get our latest perspective on ways you can strengthen executive alignment to company purpose and foster a stakeholder mindset. You must rethink three critical areas of executive compensation:


  • How to pay?
  • When to pay
  • And what to pay for?

As with any new compensation vehicle, we expect the purpose-based pay plan to evolve to better reflect each company’s circumstances. It takes a bold, brave company to take a risk on something new—especially when it comes to controversial areas such as executive compensation. But brave companies that take this risk will be better served in the long-term.


Learn more about purpose driven executive compensation.

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