By Dieter Holger

 

Microsoft Corp. said Thursday that progress on its sustainability goals will be a factor in determining executive pay, starting in its next fiscal year in July.

Microsoft President Brad Smith said the compensation committee of the board of directors "will assess, review, and approve these changes" that will apply to the company's senior leadership as well as Chief Executive Satya Nadella.

Since 2016, the Redmond, Wash.-based software giant has tied "a portion of executives' compensation to environmental, social and governance measures starting with diversity representation gains," he said in a blog post.

Microsoft has a raft of sustainability ambitions, including reaching carbon negativity by 2030. It said it invested in 26 carbon-dioxide removal projects to clear more than 1.3 million metric tons of CO2 from the atmosphere this fiscal year. In fiscal 2020, Microsoft said it cut 6% of its CO2 emissions.

 

Write to Dieter Holger at dieter.holger@wsj.com; @dieterholger

 

(END) Dow Jones Newswires

January 28, 2021 06:51 ET (11:51 GMT)

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