Mastercard links executive bonuses to environmental, social and governance goals

FILE PHOTO: A Mastercard logo is seen on a credit card in this picture illustration August 30, 2017. REUTERS/Thomas White

(Reuters) - Mastercard will link bonuses for its senior executives to environmental, social and corporate-governance initiatives, Chief Executive Officer Michael Miebach said in a note on the payment processor’s website on Wednesday.

The company will link compensations for executive vice presidents and above to helping Mastercard achieve its goals of cutting its carbon usage, improve financial inclusion and gender pay parity.

“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...” Miebach said.

The move comes as the COVID-19 pandemic has boosted interest in companies that perform well on environmental, social and governance targets as it led to an assessment of how economies should look in future.

Mastercard, which earlier this year pledged to achieve net zero emissions by 2050, priced a $600 million sustainability bond this month, with proceeds to be used to maximize carbon reduction and fostering inclusive growth, among other initiatives.

Reporting by Noor Zainab Hussain in Bengaluru; Editing by Krishna Chandra Eluri