Mastercard Inc's CEO Michael Miebach announced on Tuesday that all employee bonuses will be linked to environmental, social, and corporate governance (ESG)initiatives, expanding an earlier programme that was confined to the company's senior executives.
Mastercard will be able to meet its aims of reducing carbon emissions, enhancing financial access, and achieving gender pay equity as a result of this action. Mastercard advanced its net-zero goal by a decade, from 2050 to 2040, in November.
“…we’re tying compensation to emissions, financial inclusion and the gender pay gap because we have a substantial impact in these areas and because they closely align with our vision,” Miebach wrote in a note on the company’s website.
“Our ESG priority areas remain the same, with a sharpened focus on the environment, including reducing emissions and partnering with suppliers committed to decarbonization.”
Mastercard said in March that compensation for executive vice presidents and above will be linked to ESG activities.
The incentive pay schemes were designed to promote and reward performance that helps the company accomplish its objectives - both financial and strategic goals that create the groundwork for future success, the company said.