Seymour Burchman Featured in Bloomberg
Semler Brossy’s Seymour Burchman was recently featured in the Bloomberg article, “One Way to Slow Climate Change: Pay CEOs to Protect the Planet.” In the article, Burchman is quoted on the rising trend of tying compensation to environmental impact.
Most large companies now set sustainability goals, but few impose consequences on employees who fail to meet them. Around 500 corporations worldwide tie executive pay to environmental, social or governance goals, according to data compiled by Bloomberg. Not all of these are related to climate impact—diversity and safety are more prevalent than environment targets among this group.
That’s beginning to change. “It’s is coming up more and more, but five years ago this wasn’t part of the conversation,” said Seymour Burchman, a managing director at Semler Brossy, a consultant that advises on compensation plans. With companies creating better data around environmental impact and risks, he said, the case for linking compensation gets stronger. “The board can’t ignore it.”
The employers that most often link compensation to environmental impact aren’t crunchy consumer brands like Seventh Generation but gritty miners. Extractive industries need to measure environmental impact to get licenses required to operate in local communities, and Burchman said that incentive pay has been an effective way for miners to improve these results.
To read the full article, visit Bloomberg.