Skadden Discusses the Social Factors in ESG

Attorneys from Skadden's London office look at the increasing attention investors and the public are giving to employment practices as stakeholders shine a spotlight on social matters. Shareholders, supported by U.K. and European regulators and investor advisory services, are focusing on safe working conditions amid the pandemic, aligned supply chain standards, and measurable efforts to increase diversity and gender representation. In the context of remuneration, social factors include continued focus on reducing pay gaps, ensuring appropriate and proportionate executive compensation, and maintaining a fair remuneration structure. It is clear that social and employment considerations will increasingly play a role in structuring remuneration and reducing a company’s vulnerability to shareholder activism.