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Incorporating sustainability metrics into executive compensation : insights from the FTSE 100 index

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Resumo:This dissertation explores the incorporation of sustainability metrics into executive remuneration across various industry sectors. Sustainability has become increasingly important in today's corporate landscape, not only due to regulatory pressures but also because it ensures the viability and continuity of businesses. Executive compensation plays a critical role in aligning management with long-term sustainability goals, driving both corporate responsibility and performance. To achieve this, a qualitative analysis of annual reports from FTSE 100 companies was conducted, focusing on those with integrated sustainability plans into remuneration. The findings revealed that, overall, the incorporation of sustainability metrics into executive pay is on the rise, aligning with increasing regulatory demands and stakeholder expectations. This study confirms that most sectors have made meaningful efforts to implement sustainability metrics into executive compensation, reflecting their commitment to adhering to these norms and meeting stakeholder expectations. However, this focus on sustainability may also suggest instances of greenwashing, particularly in industries less directly associated with environmental pollution, where the emphasis on sustainability could be more superficial.
Autores principais:Canelhas, Catarina Cristina Afonso
Assunto:Sustainability Metrics Executive Compensation Industry sectors Sustainability Metrics Executive Compensation Industry Sectors
Ano:2024
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso restrito
Instituição associada:Universidade de Lisboa
Idioma:português
Origem:Repositório da Universidade de Lisboa
Descrição
Resumo:This dissertation explores the incorporation of sustainability metrics into executive remuneration across various industry sectors. Sustainability has become increasingly important in today's corporate landscape, not only due to regulatory pressures but also because it ensures the viability and continuity of businesses. Executive compensation plays a critical role in aligning management with long-term sustainability goals, driving both corporate responsibility and performance. To achieve this, a qualitative analysis of annual reports from FTSE 100 companies was conducted, focusing on those with integrated sustainability plans into remuneration. The findings revealed that, overall, the incorporation of sustainability metrics into executive pay is on the rise, aligning with increasing regulatory demands and stakeholder expectations. This study confirms that most sectors have made meaningful efforts to implement sustainability metrics into executive compensation, reflecting their commitment to adhering to these norms and meeting stakeholder expectations. However, this focus on sustainability may also suggest instances of greenwashing, particularly in industries less directly associated with environmental pollution, where the emphasis on sustainability could be more superficial.