• Gustavo Bernal Torres

CEO Pay Tied to ESG Sets Canadian Banks Apart From the Crowd

Canada overall is ahead of the curve, with 16% of its companies studied by Sustainalytics reporting relatively transparent ESG criteria tied to pay. That trails only Australia, at 20%-

  • Canada’s six largest banks have all added ESG components to their chief executive officers’ compensation frameworks, putting them in a small minority of companies that tie executive pay to such measures.

  • How environmental, social and governance matters affect pay varies by firm, as does the percentage of compensation involved. Still, the Canadian lenders stand out because only 9% of the 2,684 companies in the FTSE All World Index tracked by researcher Sustainalytics in a 2020 study had tied executive pay to ESG.

Source: https://www.bloomberg.com/news/articles/2021-03-18/ceo-pay-tied-to-esg-sets-canadian-banks-apart-from-the-crowd


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