pay for performance? aligning executive compensation with ESG-goals
beyond financial KPIs the new standard for leadership in the evolving landscape of corporate governance, the traditional definition of performance is expanding. for b2b decision makers, the question is no longer just about profit margins but about how those margins are achieved. integrating ESG metrics into executive compensation is a powerful tool to demonstrate **integrity** and ensure **accountability** at the highest levels [ESRS G1]. the strategic shift: governance as a driver tying executive pay to sustainability targets moves ESG from a compliance exercise to a core strategic driver. according to the Corporate Sustainability Reporting Directive (CSRD), companies must disclose information regarding their governance bodies, including incentive schemes. this level of **transparency** signals to investors and partners that the company is serious about its long-term impact. practical implementation to effectively reward executives for ESG performance, a suggestion: a model where a s...