Social Governance

All Employee Bonuses at Mastercard to Link with ESG Targets

Published on: 22 April 2022 04:30 PM
by KnowESG

Mastercard, a financial services corporation, announced that it would link employee compensation to ESG goals. The company has more focused attention on the environment and society, and it wants to reduce emissions and work with suppliers who want to make things less carbon-based.

Mastercard's "In Solidarity" commitment strives to narrow the racial wealth and opportunity gap. Through its Priceless Planet Coalition, the company aims to plant 100 million trees by 2025.

Last year, the company introduced a new compensation model for its executives at the executive vice president level and above. Mastercard determines employees' bonuses based on their performance on three environmental, social, and corporate governance priorities: gender pay parity, financial inclusion, and carbon neutrality.

According to Mastercard, each person contributes to upholding the company's ESG commitments. The corporate score will reward employees for their growth and deliver positive results for the company. It also said that bonus calculations for all employees would be linked to ESG targets.

As the company's global efforts go much deeper and broader, they tie compensation to emissions, gender pay gap, and financial inclusion because Mastercard has a substantial impact in these areas.