Welcome to the fifth publication in a series of research reports issued by the Global Governance and Executive Compensation (GECN) Group. Last year’s research titled 2021 and Beyond: Global Trends in Stakeholder Incentives explored the efforts of companies to incorporate environmental, social, governance (ESG measures), and other value drivers into their executive compensation plans, and the prior year’s research titled Seven Lessons from Engaged Investors focused on investors’ changing expectations for companies. This year’s report, titled 2022 and Beyond: Global Trends in Stakeholder Incentives picks up where last year’s research left off and discusses the growing and evolving trends in the use of stakeholder incentives globally.
Study Methodology
This report deliberately refers to “stakeholders.” While we acknowledge that ESG is the most frequently used name for interests that extend beyond shareholders, we believe the term ESG alone does not capture the full breadth of non-financial performance and other interests that also contribute to long-term performance and sustainability. As a result, we use the term “stakeholder incentives” to refer to ESG as well as customer and community interests.
This year’s research expands the survey population to include companies in South Africa, in addition to the regions covered last year. All told, we collected and analyzed data on stakeholder incentives from the most recent public disclosures of all companies listed in the following indexes: