Cevian Capital Requires ESG Targets in Management Compensation Plans

“Improving the ESG performance of companies is not only the right thing to do for society, it is the right thing to do to create sustainable value for shareholders and other stakeholders. There is no conflict between “values” and ”value” – in fact in today’s world, they are fully symbiotic.”

Lars FörbergCevian Capital Managing Partner and Co-founder

“Asset owners, investors, management teams and board directors all look to management incentive plans to drive and direct performance - and yet today, only a tiny share of companies meaningfully incorporate ESG targets into their incentive plans. That makes no sense. To get away from ESG box checking and ensure that ESG considerations are truly embedded in corporate strategies, we need to incentivise management teams to embrace them.”

Christer GardellCevian Capital Managing Partner and Co-founder