Integrating ESG Metrics in Executive Compensation and Incentive Plan Design: Recent Trends and Pitfalls to Avoid

Strafford

This CLE webinar will provide employee benefits counsel a detailed analysis of utilizing environmental, social, and governance (ESG) metrics in executive compensation and incentive programs. The panel will discuss short-term and long-term incentives, cash vs. equity, shareholder considerations, performance-based awards, and other key executive compensation and incentive program considerations for companies incorporating ESG metrics in their programs.
Description

Consumer and employee activism and political pressure have forced many businesses to assess their current compensation and incentive programs with the goal of integrating ESG metrics within such programs. Executive compensation attorneys and corporate counsel must understand the legal implications and other factors in order to assist clients in implementing these programs inclusive of ESG metrics.

As demands on corporations change, company leadership must navigate shareholder and employee expectations regarding ESG initiatives. Many have moved towards structuring incentive programs that will include ESG factors and results. However, integrating these items into governance and compensation actions is complex and must involve a careful analysis of the types of incentives to be included, challenges in performance-based factors, recent SEC disclosure rules, and other critical items that must be considered.

Listen as our panel discusses short-term and long-term incentives, cash vs. equity, shareholder considerations, performance-based awards, and other key executive compensation and incentive program considerations for companies incorporating ESG metrics in their programs.

Outline

1. Recent trends for ESG in compensation and incentive programs
2. Board oversight of ESG
3. Integrating ESG metrics into compensation programs
   • Short-term incentives vs. long-term incentives
   • Cash vs. equity
   • Subjective vs. objective measures
4. Legal considerations and pitfalls to avoid

More Information, How to Register