CEO Pay Tied to ESG Sets Canadian Banks Apart From the Crowd
- A broad 2020 study found similar policies at just 9% of firms
- CIBC executive says firm ‘wanted to drive accountability’
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Canada’s six largest banks have all added ESG components to their chief executive officers’ compensation frameworks, putting them in a small minority of companies that tie executive pay to such measures.
How environmental, social and governance matters affect pay varies by firm, as does the percentage of compensation involved. Still, the Canadian lenders stand out because only 9% of the 2,684 companies in the FTSE All World Index tracked by researcher Sustainalytics in a 2020 study had tied executive pay to ESG.