Abstract:
Despite the increasing importance of environmental, social and
governance (ESG) factors, it is not fully understood whether
companies consider these factors when designing compensation
plans for their directors. This study investigated the extent
to which directors’ remuneration integrates ESG factors.
The study sample is made up of JSE-listed companies for the
period 2015 to 2021. The estimated generalised least squares
regression technique was used to analyse the data. The results
show the shift towards the integration of ESG factors in
directors’ compensation plans. It should be established which
ESG factors are pertinent in the South African context.
