In this webcast, Main Data Group General Manager Brooke Fernandez and Pearl Meyer Principal Adam Kahle, share examples from this year’s proxies on how some companies are incorporating cybersecurity metrics into executive pay plans.
Following an assessment by the U.S. Department of Homeland Security’s Cyber Safety Review Board that the Chinese hack of its systems in the summer of 2023 was preventable, Microsoft’s decision in May 2024 to start linking Cyber Security to executive pay has many companies wondering if this is something they need to consider.
In this webcast, Main Data Group General Manager Brooke Fernandez and Pearl Meyer Principal Adam Kahle, shared examples from this year’s proxies on how some companies are incorporating cybersecurity metrics into executive pay plans. They also discuss what companies should consider when developing these metrics and determining whether it makes sense to link them to executive pay. Such considerations include whether this approach makes sense for a particular industry, and whether the company has a culture of following cyber security protocols (and if not, would tying it to executive pay improve its adherence to the protocols).
Brooke and Adam look at how these metrics compare to ESG metrics and other risk management and safety goals that mining and energy companies as well as manufacturers and industrial companies incorporate into their proxy filings. They evaluate the considerations involved in determining if cybersecurity should be a part of companies’ ESG reporting.