The Toronto-Dominion Bank | Incentive compensation for all employees against ESG objectives at The Toronto-Dominion Bank

Status
2.01% votes in favour
AGM date
Previous AGM date
Proposal number
3
Resolution details
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
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
RESOLVED: It is proposed that the board of directors consider introducing a new approach to
incentive compensation, with the objective of linking a portion of compensation of all
employees to the performance of the organization against its key ESG objectives.
Supporting statement
SUPPORTING STATEMENT: In April 2022, Mastercard’s CEO, Michael Miebach, announced that the company was expanding its incentive
compensation program to achieve ESG objectives to all employees(1). Referring to the implementation of
such a program among executives in the previous year, he mentioned that this compensation strategy had
made it possible to meet and exceed the objectives 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 him, we believe that achieving many ESG objectives is not just the responsibility of senior management,
but of all employees who, in their day-to-day work, can make a significant contribution to achieving the
organization’s priority objectives, exceeding them and suggesting innovative ways of achieving them more
quickly. For Mastercard’s CEO, this new employee-inclusive compensation strategy has led him to bring
forward the achievement of carbon neutrality from 2050 to 2040(3)

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