Sharing accountability and success: Why we’re linking employee compensation to ESG goalsApril 19, 2022 | By Michael Miebach
As a company, we are committed to doing well by doing good. It’s something that makes us unique. It’s core to our values and we expect it of ourselves.
It shows up in many forms inside and outside of Mastercard. We see it in our In Solidarity commitment to narrow the racial wealth and opportunity gap and the Priceless Planet Coalition, which aims to plant 100 million trees by 2025. It’s also embodied in our innovations like True Name and the Touch Card. Regardless of the specific initiative or product, it means leading our business with empathy to help us build better solutions for everyone.
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. Because of their work and yours, we either met or exceeded our goals.
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.
Our ESG priority areas remain the same, with a sharpened focus on the environment, including reducing emissions and partnering with suppliers committed to decarbonization. While our global efforts go much broader and deeper, we’re tying compensation to emissions, financial inclusion and the gender pay gap because we have a substantial impact in these areas and because they closely align with our vision. Making personal, financial and environmental success attainable for everyone – that’s how we power economies and empower people.
Our responsibility, and our success, is shared. And now we’re ensuring the recognition is too. When we put the full force of all of us behind our goals, there’s nothing we can’t achieve.