Banker Bonuses Tied to ESG Metrics Are on the Rise in Europe
- ESG-linked pay being expanded from executives to wider staff
- European banks will soon be obliged to reflect ESG risk in pay
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European bankers will soon have to show they’re contributing to a cleaner environment, a better society and good governance -- or face a smaller pay package.
In the latest sign that ESG is reshaping finance, most of the 20 major European banks surveyed by Bloomberg said they were either working on, or already had, a model that links staff remuneration to a firm’s performance on sustainability metrics. That’s as European regulators explicitly add ESG risks to pay guidelines, with the change due to take effect by the end of 2021.