IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-04618379.html
   My bibliography  Save this paper

Etat des lieux des critères ESG dans la politique de rémunération des dirigeants mandataires sociaux

Author

Listed:
  • Viviane de Beaufort

    (CEDE - Centre Européen de Droit et d'Economie - ESSEC Business School)

  • Hichâm Ben Chaïb

    (CEDE - Centre Européen de Droit et d'Economie - ESSEC Business School)

Abstract

This study, conducted by the European Centre for Law and Economics (CEDE) at ESSEC, analyzes the integration of ESG (Environmental, Social, Governance) criteria into the remuneration policy of executive directors (DMS) of the CAC40, utilizing research carried out within the Women Board Ready ESSEC programme in 2023. In response to growing extra-financial challenges, the remuneration of DMS has evolved to include ESG objectives, aiming to encourage a serious consideration of these criteria in the strategies of major corporations, alongside the evolving legal framework. The inclusion of ESG criteria in remuneration packages is now a widespread practice among large European companies, though the weighting and nature of the criteria used vary significantly. Reports from the Responsible Investment Forum (FIR), based on annual questions during shareholder meetings of major corporations published between 2020 and 2024, show a growing trend in the integration of ESG criteria into the remuneration policies of CAC 40 companies. In 2023, 842 written questions were posed during general assemblies. Within the Women Board Ready ESSEC programme, participants of the 2023 cohort worked on addressing disparities in the application of ESG criteria. While 100% of CAC40 companies have included ESG criteria in short-term variable remuneration 3 since 2022, the ESG component in variable remuneration is 19.6% and 19.8% for the short and long terms, respectively. Only 23 CAC 40 groups provide a detailed breakdown of ESG criteria for the short term, and only 16 do so for the long term. This study also notes an imbalance in the types of ESG criteria considered, with a predominance of environmental criteria over social and governance criteria. Companies need to ensure that prioritized ESG indicators are clear, detailed, and aligned with meaningful performance objectives. The CSRD directive should serve as a tool for progress in this area, leading us to produce a second working paper on this topic and broader recommendations, to be published later.

Suggested Citation

  • Viviane de Beaufort & Hichâm Ben Chaïb, 2024. "Etat des lieux des critères ESG dans la politique de rémunération des dirigeants mandataires sociaux," Working Papers hal-04618379, HAL.
    • Handle: RePEc:hal:wpaper:hal-04618379
    Note: View the original document on HAL open archive server: https://essec.hal.science/hal-04618379
    as

    Download full text from publisher

    File URL: https://essec.hal.science/hal-04618379/document
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-04618379. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.