https://townhall.com/columnists/chr...bonus-calculations-for-all-employees-n2606335
april 26 2022 For the most part, financial services companies erect employee bonus systems for one reason and one reason only: to maximize shareholder profits.
However, a strange new occurrence is afoot in the financial services sector, wherein companies are no longer concerned with maximizing shareholder value—which is their fiduciary responsibility and reason for being—because they are more interested in lining their own pockets by aligning themselves with the latest woke investment scheme known as environmental, social, and governance (ESG) scores.
Take Mastercard for example, which recently announced it will begin “linking employee compensation to ESG goals.”
According to Mastercard CEO Michael Miebach, “Last year, we introduced a new compensation model for our executives at the executive vice president level and above. Their bonus was determined in part by the company’s performance on three Environmental, Social and Corporate Governance priorities: carbon neutrality, financial inclusion and gender pay parity.”
Miebach continued, “Each and every one of us shares the responsibility to uphold our ESG commitments. That’s why we’re extending that model to our annual corporate score and all employees globally, taking our shared accountability and progress to the next level. The corporate score rewards employees for going above and beyond to deliver strong results for the company. Beginning this year, achieving our ESG goals will now factor into bonus calculations for all employees.”