Including extra-financial indicators in appraisal and remuneration metrics is increasingly used to promote sustainability through the business.
46% of CR Index participant companies now link CEO (or equivalent) remuneration and the company’s CR performance, up from 24% in 2002. And 40% tell us that if corporate responsibility targets are missed then the CR component of the remuneration package for CEOs is withheld. 38% share this information in the public domain, particularly through annual reports.
At the same time, leading responsible companies are working hard to ensure that the ‘living wage’ is provided; going beyond meeting the minimum legal requirement where a higher level is needed to meet basic living standards.
80% of CR Index participant companies monitor and review the pay of employees to ensure it meets the 'living wage', while 40% of companies ask suppliers and contractors to monitor and review wages paid. This remains more of a challenge for construction and support service companies.
|Manchester Airport Group requires all leaders, as part of their bonus scheme to demonstrate how they apply CSR and contribute to the Group's CSR agenda.|
|The Southern Co-operative: 40% of the Chief Executive's remuneration package is based on CR and now includes college and member engagement in addition to performance in the CR Index.|
Legal & General Group’s five strategic priorities are linked to CR performance. 30% of the CEO's and executive committee remuneration is based upon achieving these objectives.
Dairy Crest: 25% of the CEO bonus is based on personal performance of which CR is an integral part and 10% of the Long Term Alignment Plan is directly linked to CR performance.