The Use Of Sustainability Metrics In Executive Compensation Plans And Their Effect On Corporations

Abstract

This paper serves to explore the background behind executive compensation packages as well as corporate social responsibility and specifically sustainability. After exploring the background behind these two areas of business, this paper examines the motivation behind each and identifies how companies have recently used sustainability metrics when designing compensation packages. Finally, this study serves to explore the strengths and shortcomings of using sustainability metrics while providing recommendations and insights on the approach companies should take when considering sustainability and its use in compensation.