NN Investment Partners (NNIP), a Dutch asset manager, has urged the industry to take proactive steps to reduce excessive executive pay and use compensation to stimulate long-term sustainable behavior.
According to the asset manager, remuneration should be based entirely on performance, and performance criteria should be measurable, transparent, and relevant to the company’s long-term success.
Furthermore, NNIP stated that it expects companies in which it invests to incorporate non-financial sustainability measures into their remuneration policies.
It has warned that if companies do not reward the delivery of a sustainable business approach that connect sustainability KPIs to compensation, it may vote against a remuneration policy.
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