Royal Bank of Canada | Incentive compensation for employees based on ESG objectives at the Royal Bank of Canada

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
RY:CN
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Adopt or amend a policy
ESG theme
  • Environment
ESG sub-theme
  • Remuneration or pay
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
RESOLVED: that the Board of Directors consider the appropriateness of introducing a new incentive compensation guideline linking a portion of the compensation of all employees to the organization’s performance on its ESG goals.
Supporting statement
SUPPORTING STATEMENT: In April 2022, Mastercard CEO Michael Miebach announced that the company was extending its incentive compensation program linked to ESG goals to all employees.1 Referring to the previous year’s implementation of such a program for executive officers, Mr. Miebach said that this compensation strategy allowed them to meet or exceed the goals that had been set. He added: “Each and every one of us shares the responsibility to uphold our ESG commitments […] That’s why we’re extending that model to our annual corporate score and all employees globally, taking our shared accountability and progress to the next level.”2 Like Mr. Miebach, we believe that meeting many of the ESG goals depends not only on executive officers, but on all employees who, in their daily work, can contribute significantly to achieving and exceeding the organization’s primary goals, and suggest innovative ways to reach them faster. According to Mastercard’s CEO, this new compensation strategy for all employees has allowed him to accelerate the company’s net-zero timeline by a decade, to 2040 from 2050

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