How to Make Climate Progress: Tie It to CEO Pay.

More company boards are incorporating climate-related goals into executives' compensation plans, as awareness grows about the impact of climate change on corporate bottom lines. However, experts emphasize the importance of tying pay to climate goals in the right way. Climate-related goals should be rooted in science, with clear and measurable targets. The metrics used will vary depending on the company's industry and focus. Compensation should be directly tied to the goals, rather than vague aspirations. Long-term compensation plans should include significant climate incentives, as they represent the majority of CEOs' variable pay. Flexibility should be built into compensation plans to account for setbacks or factors beyond a company's control. Advocates urge companies to start implementing climate-related compensation plans, even if they are not perfect, and update them as necessary. [Extracted from the article]