WTW Survey: 74% Of APAC Companies Align Executive Pay With ESG Goals

A Willis Towers Watson plc (WTW) survey reveals that 74% of APAC’s top 400 companies integrate ESG metrics into executive incentive plans, marking a 2% rise from 2023.

The survey notes regional variations, with Australia leading at 92%, followed by Singapore and Japan. In contrast, adoption remains lower in India, Malaysia, and China. ESG metrics are more commonly integrated into short-term incentive plans, with 64% adoption, while only 30% of companies apply them in long-term plans. Social metrics, such as diversity and inclusion, dominate the ESG measures used, while environmental metrics, including carbon emissions, are less prevalent. Sector-specific trends show higher adoption in energy, materials, and financial industries.

The findings highlight differing regional priorities influenced by local regulations and market conditions, potentially shaping corporate strategies and executive pay alignment across the region.