Mastercard CEO Michael Miebach announced that the global payment technology company will begin linking incentive compensation for senior executives to the company’s environmentalEnvironmental criteria consider how a company performs as a steward of nature., socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. initiatives.
In a posting on the company’s website, Miebach wrote:
“We have embedded inclusion, sustainability, and decency into the heart of our business – blending purpose and profit. By bringing our innovation, insights, and ingenuity to the table, along with philanthropy, we’ve become leaders on advancing financial inclusion and inclusive growth around the world. Now, we’re taking another important step that underscores our shared commitments–and our shared accountability, which starts at the top.”
In addition to performance on financial and strategic goals, Mastercard’s senior executives, from the EVP level and up, will have incentive compensation tied to progress towards the company’s ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. priority areas of carbon neutrality, financial inclusion, and gender pay parity.
Mastercard’s new initiative is part of a growing trend among companies across a wide range of industries to tie compensation to ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. progress. Recently, Apple revealed that it will introduce an ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. modifier to its executive bonus payouts, Deutsche Bank announced that it plans to link top level executive and management compensation to ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. and sustainable finance criteria, and Marathon Oil restructured its incentive programs to prioritize issues including environmentalEnvironmental criteria consider how a company performs as a steward of nature. performance and safety. Earlier this month, Chipotle Mexican Grill announced that its executive leadership team will be evaluated on progress toward its sustainability goals encompassing Food & Animals, People, and the Environment.
Miebach said:
“We’ve seen firsthand how our commitment to environmentalEnvironmental criteria consider how a company performs as a steward of nature. and socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. responsibility – and our core values of operating ethically, responsibly and with decency – is directly connected to our continuing success as a business. This is our starting point, and we will continue to evolve, expand and adapt these priorities to ensure they address the changing marketplace and our corporate objectives.”
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