ServiceNow Ties Compensation for Top Execs to ESG Goals

Incentive compensation for top executives at digital workflow company ServiceNow will be tied to the company’s performance against its 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. targets, according to the company’s 2022 proxy statement.

In the filing, the company reveals that 2021’s cash incentive program for Named Officers included “environmentalEnvironmental criteria consider how a company performs as a steward of nature. and diversity, equity and inclusion (“DEI”) related targets,” based on the Compensation Committee’s belief that “tying 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. performance to compensation will drive the execution of our 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. strategy, and, ultimately, our business strategy.” According to the statement, 75% of the cash incentive is based on a series of financial metrics, with the remaining 25% based on individual performance metrics including 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..

The proxy statement also revealed that the move follows shareholder feedback indicating interest calling on the company to “tie 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. to compensation program to motivate execution against 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. strategy.”

ServiceNow’s initiative is part of a growing trend among companies across a wide range of industries to link 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, including similar moves at UBS, Caterpillar, Apple and Trane, among several others. Last week, Mastercard announced that it would extend its compensation model tying bonus pay 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. goals to all of the company’s global employees.

In the company’s newly released Global Impact Report, ServiceNow CFO Gina Mastantuono said:

“Given ESG’s connection to long-term value creation, we’ve made it a strategic imperative at ServiceNow. We’ve embedded it into our operations, solutions, and cultural mindset to benefit our employees, customers, partners, and communities.”

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