Alphabet to Introduce Executive Bonuses Partly Tied to ESG Goals

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Alphabet Inc. said it will create a bonus program for senior executives that’s partly based on their performance in supporting environmental, social and governance goals.

The program will begin in 2022, the company’s Chairman John Hennessey wrote in an annual proxy filing. ESG goals “have long been a key part of Alphabet and Google’s work,” he added in a letter to shareholders. The Google parent company will hold its annual meeting on June 2.

Hennessey also addressed diversity and workplace harassment in the letter, saying the Alphabet board agreed on a series of “principles and improvements” that incorporated input from employees and stockholders. That included the creation of a new Diversity, Equity, and Inclusion Advisory Council, which comprises senior company executives and external experts in the field.

“The Board also now reviews the effectiveness of our sexual harassment and retaliation prevention programs, and proposed changes, on a quarterly basis,” Hennessey wrote.

Alphabet also disclosed business transactions with companies affiliated with Google founders Sergey Brin and Larry Page. From the start of 2020 through March 31, 2021, it charged LTA Research & Exploration LLC, owned by an entity affiliated with Brin, approximately $3.5 million.

In the same time frame, it charged Kitty Hawk Corp. $1.9 million in rent and operating expenses to occupy two buildings in Mountain View, California, and Wisk Aero LLC $616,000 to occupy a third. Both companies are affiliated with Page, according to the proxy filing.

©2021 Bloomberg L.P.

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