Can corporations play a role in making the world a better place? This question has gained increasing attention among investors recently, and a new school of thought is emerging: not only do companies have the ability to enact positive change on the community and environment, but they actually have a corporate responsibility to do so. Investors are now more focused than ever on ensuring corporate pay practices reflect this full spectrum of stakeholder interests. As a result, the rapidly evolving multi-stakeholder model of business is forcing companies to adopt a new framework for merit increases, annual performance reviews, incentive plan design, and other elements of compensation plan design.
How should today’s employers address new priorities like responsible investing, conscious capitalism, and Environmental, Social, and Governance (ESG) criteria? In this exclusive guide, Principal Consultant Fred Whittlesey of Compensation Venture Group will deconstruct these drivers behind the multi-stakeholder business model, as well as the ways in which they will shape future compensation and benefit plans and policies.
Key Takeaways Include:
The phrases that define the new approach to compensation and how they correspond to terms for similar concepts in your organization
The historical background supporting current compensation practices as well as the competing framework that has shifted the thought process
How investors’ emerging views on value creation demand a rethinking of current practices within a new framework from Boards of Directors and executive teams
Why HR must proactively develop methods for assessing current programs and market trends in light of this relatively new perspective