Can linking executive compensation to sustainability performance lead to a sustainable business model? Evidence of implementation from enterprises around the world
Résumé
Making top executives accountable for their companies' sustainability performance demonstrates the seriousness of those companies' efforts to combat adverse environmental impacts caused by business practices and become sustainable corporate citizens. Corporations' sustainability goals should be reflected in top executives' remuneration and not merely in reports. Linking executive compensation with a company's sustainability goals may result in a better model for sustainable corporate health. Decision makers (CEO, CFO) that fail to support the mission of sustainability are unlikely to frame optimum policies for their companies.