Mastercard has linked compensation for majority of its senior executives, EVPs and above to its environmental, social and corporate governance (ESG) goals.
Under the move, compensation for the firm’s executives will be linked to Mastercard’s three global ESG priorities, including carbon neutrality, financial inclusion, as well as gender pay parity.
Commenting on the move, CEO Michael Miebach said: “The purpose of our incentive compensation programs is to encourage and reward performance that helps us achieve our goals — financial goals, of course, as well as strategic goals that lay the foundation for our future success.
“We believe these ESG goals, which our senior leaders have the ability – and responsibility – to influence, will help our business grow and thrive for years to come. This change further reinforces our commitment to deepen our culture of inclusion, and ensure people can reach their potential, economic growth is inclusive, and the planet can thrive.
“We’ve seen firsthand how our commitment to environmental and social responsibility – and our core values of operating ethically, responsibly and with decency – is directly connected to our continuing success as a business.”
Mastercard’s sustainability initiatives
The card giant has committed to attain net-zero emissions by 2050, and also aims to bring 1 billion people and 50 million micro and small businesses into the digital economy by 2025.
Last year, the New York-based firm pledged $500m to help close the racial wealth and opportunity gap for Black communities across America.
In keeping with the goal, Mastercard made a capital investment in African American led mobile-first banking platform Mobility Capital Finance (MoCaFi) to offer underserved communities with access to alternate financial services.
Moreover, Mastercard recently also priced a $600m sustainability bond, whose proceeds will be used towards maximising carbon reduction and supporting inclusive growth.