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Linking Executive Pay To Climate Change Metrics

The Horizons Tracker

Do you, for instance, limit the incentives to the company’s own carbon emissions or also include those of the wider supply chain? Unlike traditional metrics like TSR (total shareholder return), climate-linked incentives in the energy industry so far do not include evaluation against a peer group,” the researchers explain. “As

Metrics 84
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Should a CEO’s Bonus Be Based on Financial Performance Alone?

Harvard Business Review

CEO incentives have traditionally been evaluated against objective data — also labelled “hard.” Specifically, to help modify the bank’s culture to match its stated values, the Remuneration Committee and Board recommended a change to the reward split: TSR 50%, customer satisfaction 25%, and people and community 25%.

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Designing CEO Pay to Drive "Good" Behavior

Harvard Business Review

companies receive more than half of their annual pay value in long-term incentive — typically equity — compensation. In Europe, that long-term incentive makes up roughly one-third of the pay. For long-term incentive plans, the dominant measure is total shareholder return (TSR).

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