Daily BriefsESG

Daily Brief ESG: No Consistent Relationship Between Executive Compensation and Stock Price/ Earnings Has Been Seen and more

In today’s briefing:

  • No Consistent Relationship Between Executive Compensation and Stock Price/ Earnings Has Been Seen
  • Samvardhana Motherson – ESG Report – Lucror Analytics


No Consistent Relationship Between Executive Compensation and Stock Price/ Earnings Has Been Seen

By Aki Matsumoto

  • Managers/Executives should receive compensation that is appropriate to increase corporate value and stock price, and executive compensation should be tied to the realization of corporate value and stock price growth.
  • Not many companies have been able to increase their corporate value by hiring global talent on their boards like Hitachi, MUFG, Mitsui & Company, and Daikin.
  • Currently, the relationship between executive compensation and corporate value is inconsistent. The optimal proportion of variable compensation and the acquisition/utilization of global human resources to strengthen competitiveness will be key.

Samvardhana Motherson – ESG Report – Lucror Analytics

By Charles Macgregor

  • Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
  • We assess Samvardhana Motherson’s (SM) ESG as “Adequate”, in line with its “Adequate” Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Weak”.
  • The score is based on the ESG reporting of parent Motherson Group (encompassing ultimate parents Samvardhana Motherson International Limited and Motherson Sumi Systems Limited), which reports ESG on a consolidated level without providing meaningful details at the SM level.

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