FINAL WORD
Time to link ESG results to executive compensation
Wale Arewa , CEO Xperien
Executive compensation needs to be linked to ESG performance which is driven by the imperative of multistakeholder capitalism and heightened attention to sustainability issues . This is according to .
There has been a noticeable shift in corporate practices towards recognising the importance of environmental , social , and governance , ESG factors in driving sustainable growth and enhancing stakeholder value . This shift has prompted companies to rethink their approach to executive compensation , with an increasing number choosing to integrate ESG metrics into their compensation plans .
Executive compensation serves as a powerful tool for aligning incentives with these broader objectives and signalling a company ’ s commitment to ESG principles .
By aligning executive pay with ESG performance , companies seek to reinforce their commitment to sustainability , drive positive change in key areas such as diversity , equity and inclusion , DEI and climate change , and enhance transparency and accountability to stakeholders .
Despite the benefits of linking executive compensation to ESG performance , there are challenges and considerations that companies must navigate . These include the lack of standardisation in ESG metrics , concerns about transparency and effectiveness , and the need to carefully evaluate the materiality , durability , and auditability of ESG goals .
Companies must also address scepticism regarding the ability of ESG goals to drive financial performance and mitigate the risks of rewarding the wrong behaviours . To effectively integrate ESG factors into executive compensation , companies should adopt a rigorous and methodical approach .
This involves identifying material and auditable ESG goals , benchmarking against industry peers , engaging with stakeholders , and periodically reassessing goals to ensure their continued relevance and effectiveness .
Companies must also communicate clearly with investors and other stakeholders about the rationale behind incorporating ESG into compensation plans and the expected impact on long-term performance .
IT Asset Disposition , ITAD solutions offer a unique avenue to reinforce their commitment to ESG principles while addressing critical IT hardware management needs across various C-suite domains . For CFOs , ITAD facilitates the recovery of value from decommissioned IT hardware , optimising financial resources and reducing waste .
Meanwhile , CIOs can mitigate data loss and promote resource efficiency through the reuse of IT hardware , aligning IT practices with broader ESG objectives .
Technical mentorship is best conducted within a project . Not only will the senior have context of the junior ’ s challenges but also their day-to-day experiences . By investing time into their growth , the mentee will feel more comfortable . In turn , they will also be able to take on greater responsibility for the project which can ease the load across the team .
Additionally , by taking the time to engage with your juniors , or really anyone in the team you can notice their gaps which might be surprising . cameras on allows for the prompt identification and addressal of such reactions , effectively managing any concerns that may arise .
Moreover , maintaining camera visibility encourages others to follow suit , facilitating a more connected and engaged virtual environment . This practice proves beneficial not only with clients but also with the development team .
# 8 Recognition
# 7 Visual and audio cues
In this era of remote working , many individuals opt to keep their cameras off , leading to a loss of crucial nonverbal communication cues such as body language and facial expressions . This absence of visual feedback significantly affects our ability to understand others ’ thoughts and reactions .
It is essential to acknowledge the efforts of the team ’ s great work and the impact they have had . When discussing features or problem-solving approaches that the team has implemented , it is crucial to give credit to those who contributed to these solutions . This is especially important for team leaders . By recognising the efforts of the team , cohesion is strengthened , and team members feel valued for their contributions .
Consider a scenario where you are presenting to a client , and a comment provokes a bristling reaction . If cameras are switched off , this crucial non-verbal feedback will be missed and if the client chooses to say nothing , there is a risk of a worsened relationship and assumptions may be made . Conversely , having
We can never escape the human element , but cultivating stronger relationships and maintaining clear communication enables more effective management of the unpredictable aspects of projects , allowing us to devote greater attention to the technologies we enjoy . p
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