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‘Criteria too vague’: Critics hit out at top bosses earning bonuses for hitting ESG targets

Companies are inclined to use “off the shelf” ESG metrics like board diversity and carbon emissions, even though they might not be material for their core business

Chipotle boss Brian Niccol earned $17.2 million last year as the burrito chain met some of its ESG goals

Bloomberg via Getty Images
By
Evie Liu

Brian Niccol earned $17.2m as CEO of Chipotle Mexican Grill last year, but some of his pay had nothing to do with burrito sales.

Niccol earned a $2.1m bonus partly because Chipotle met some of its goals in environmental, social and governance (ESG) areas, including sourcing local produce and advancing a diverse workforce. A spokesperson for Chipotle said the compensation plan “sets the right example” for the company’s more than 100,000 employees.

Chipotle...