Bringing Purpose Into Pay Programs

Examining non-financial metrics in the wake of the Covid-19 crisis.

Already a focus in boardrooms, ESG practices are coming under greater scrutiny as unprecedented challenges brought on by the global pandemic continue to unfold.

“There’s risk, maybe more so now than ever, for any organization unable to develop a strong connection for employees, the communities it serves and customers to their company’s purpose,” Kathryn Neel, managing director at Semler Brossy, told CBM. “Once they’ve been alienated, it may be difficult to win them back.”

But the current climate offers an opportunity to increase the prominence of non-financial, purpose-related objectives. CBM spoke with Neel about how boards should be rethinking their approach to executive pay and incentives.