CR Index 2014: Remuneration – from CEO to the living wage

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.

Read the full report.