Sen. Warren wants SEC to probe oil CEO pay tied to ESG metrics

Daniela Sirtori-Cortina 12/15/2021

(Bloomberg) --Fossil fuel companies should face probes on whether they’re using “loophole-ridden” environmental, social and governance goals to boost executive pay while contributing to environmental destruction, Senator Elizabeth Warren said, adding to her calls to rein in CEO compensation.

Marathon Petroleum Corp., Chevron Corp. and Occidental Petroleum Corp. and others appear to be using “easily-manipulated metrics” to guarantee higher payouts for executives, Warren said, citing reporting by the Washington Post.

“These corporations are just a small sample of the companies using ESG metrics to reward their top executives without meeting the commitments that they appear to be making to investors and the public,” Warren, a Massachusetts Democrat, said in a letter dated Tuesday to Securities and Exchange Commission Chair Gary Gensler. She asked the regulator to respond by Jan. 7.

Marathon, Chevron and Occidental didn’t immediately reply to a request for comment. Earlier this year, Warren and Democratic Representative Sean Casten of Illinois proposed requiring public companies to disclose their greenhouse gas emissions and other climate metrics.

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