In a proxy filing and letter to shareholders, Alphabet chairman John Hennessy announced that environmental, social, and governance (ESG) goals are core to the company, and that Alphabet will base part of its senior executive bonus program on ESG metrics. The changes are expected to occur in 2022.
Alphabet has come under recent scrutiny for diversity and harassment issues. Hennessy said the board of directors has agreed on a series of principles and improvements to address these and other ESG issues, based in part on input from employees and shareholders.
Praxis joined other investors to co-file a 2021 shareholder proposal at Alphabet connecting executive compensation to ESG issues. The resolution asked Alphabet’s Board Compensation Committee to examine the integration of sustainability metrics into performance measures or vesting conditions for senior executives.
The resolution received 12.2% of the vote at Alphabet’s annual meeting. Considering Google co-founders Larry Page and Sergey Brin own 51% of all votes, the total reflects a meaningful percentage of outside shares and lets the company know that its investors are attuned to this subject.
Alphabet is the parent company of Google and one of the largest companies in the world. Praxis holds Alphabet in the Praxis Growth Index Fund and will continue to monitor and engage the company on this topic.
Alphabet has come under recent scrutiny for diversity and harassment issues. Hennessy said the board of directors has agreed on a series of principles and improvements to address these and other ESG issues, based in part on input from employees and shareholders.
Praxis joined other investors to co-file a 2021 shareholder proposal at Alphabet connecting executive compensation to ESG issues. The resolution asked Alphabet’s Board Compensation Committee to examine the integration of sustainability metrics into performance measures or vesting conditions for senior executives.
The resolution received 12.2% of the vote at Alphabet’s annual meeting. Considering Google co-founders Larry Page and Sergey Brin own 51% of all votes, the total reflects a meaningful percentage of outside shares and lets the company know that its investors are attuned to this subject.
Alphabet is the parent company of Google and one of the largest companies in the world. Praxis holds Alphabet in the Praxis Growth Index Fund and will continue to monitor and engage the company on this topic.