Mastercard has announced that it will connect its executive bonuses to the company’s environmental, social, and governance (ESG) objectives.
In a statement on the company’s website, CEO Michael Miebach indicated that compensation for top executives, including those at the EVP level and above, will be linked to advancements in carbon neutrality, financial inclusion, and gender pay equity.
“The aim of our incentive compensation program is to motivate and reward performance that aligns with our core objectives—financial targets, along with strategic initiatives that pave the way for our future success,” Miebach explained. “We believe that these ESG goals, which our senior leaders are empowered—and obligated—to affect, will drive sustainable growth for our business in the years to come.”
Recently, Mastercard committed to achieving net-zero emissions by 2050 and has issued a $600 million sustainability bond this month. The proceeds from this bond will be utilized to enhance carbon reduction efforts and promote inclusive growth.