Linking social targets to executive compensation

Question

Explain the linking social targets to executive compensation.

Answer 1

Linking social performance targets to executive compensation are as follows:

1. Perhaps the most surefire method to enlist genuine commitment to business social responsibility initiatives is to link the achievement of social performance aims to executive compensation.

2. According to one survey, 80 % of surveyed CEOs consider that environmental and social performance metrics are a legal part of measuring a company’s whole performance.