Employment

Link­ing ESG out­comes to ex­ec­ut­ive pay is now wide­spread, as com­pan­ies use their re­ward struc­tures to hold seni­or lead­ers to ac­count for their sus­tain­ab­il­ity ini­ti­at­ives.  Ac­cord­ing to re­cent re­search three in five FTSE 100 ex­ec­ut­ive bo­nus plans now have an ESG com­pon­ent. The move to­wards great­er sus­tain­ab­il­ity is driv­en by a range of factors; not only are in­vestors and the gen­er­al pub­lic in­ter­ested in this is­sue, but new reg­u­la­tion and cor­por­ate gov­ernance stand­ards play a role here too. It’s not all plain sail­ing. One of the chal­lenges with ESG is ac­cur­ately meas­ur­ing and bench­mark­ing stand­ards, and this is a key is­sue when draft­ing ESG pay and bo­nus re­lated con­di­tions. Em­ploy­ers should take ad­vice be­fore draft­ing these pro­vi­sions to un­der­stand what they need to do in re­la­tion to:leg­al and reg­u­lat­ory con­sid­er­a­tion­show their ex­ec­ut­ive re­mu­ner­a­tion pro­vi­sions fit with their long term ESG strategythe evolving ESG land­scape and fu­ture proof­ing their ap­proach share­hold­er and in­vestor views sec­tor/mar­ket prac­tice

A world of cit­ies On Tues­day, the United Na­tions marked the Day of Eight Bil­lion – the date on which the world’s pop­u­la­tion was pro­jec­ted to reach eight bil­lion people. As the UN says, this is a mile­stone in hu­man de­vel­op­ment for a num­ber of reas­ons.