Being a responsible organization extends beyond metrics and measurement to focus on purpose, progress, and pay.
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:
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:
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.