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Lexis Nexis Market Tracker presents the in our series ‘AGM trends in 2023.’

Head of International Corporate Group at Bird & Bird, Clive Hopewell, discusses how climate change, the cost-of-living crisis and pay disputes will impact the determination and justification of directors’ remuneration.

Clive suggests that 2023 will see a predominant trend of executive remuneration and bonuses tied into company performance and environmental, social and governance (ESG) metrics. Clive’s insights align closely with our own expectations for 2023. The IA recommends that where ESG metrics are included, they should be quantifiable, suitably stretching and clearly linked to company strategy. As Clive notes, companies should articulate how they incorporate ESG metrics into variable pay.

In 2022, Market Tracker saw climate action plans and climate related metrics rise to the top of the agenda, driven by the first mandatory disclosures under the Listing Rules by premium listed companies against the Task Force on Climate-Related Financial Disclosures recommendations. Market Tracker anticipates that climate will remain a hot topic for boards and investors. We expect to see more and more companies prioritising ESG, especially climate change, throughout the 2023 season.

Many thanks to Clive and the team at Bird & Bird for their valuable insights.

For an in-depth look at this area, our Market Tracker trend report, , reviews investor voting in 2022 and looks ahead to the hot topics for the 2023 season. Drawing on the extensive data available in our Market Tracker database, this report provides insight into last year’s most significant trends.