The following are the highlights of Paychex’s FY22 ESG Governance:
We have expanded our ESG strategic framework from four to nine pillars because we believe that pursuing a robust ESG strategy is critical for Paychex's continued success. Ethics; Governance; Privacy and Security; Diversity, Equity, and Inclusion; Employees; Environment; Community; Empowering Businesses; and Occupational Safety are the pillars. Our Board of Directors remains committed to our company's long-term viability. The Board divided the responsibilities of the Governance and Compensation Committee into two separate Board committees in the fourth quarter of FY22: the Compensation and Leadership (C&L) Committee and the Nominating & ESG (N&E) Committee. The C&L Committee advises the Board on the design and administration of the company's executive and director compensation plans, as well as on the evaluation and determination of compensation for Board members, the Chief Executive Officer, and senior executive officers. The N&E Committee oversees the company's ESG risks, reporting, and disclosures, including an update on the annual assessment of environmental or climate-related risks facing the company. The N&E Committee also oversees environmental sustainability policies and programs, as well as philanthropic and political activities. Furthermore, the N&E Committee assists the Board in attracting, developing, promoting, and retaining directors and executives from diverse backgrounds who possess the talents and skills critical to the company's long-term success. In FY22, DEI and ESG program improvements accounted for a portion of the CEO's qualitative goals. DEI and ESG program improvement goals have been added as a qualitative component to cash incentive plan metrics for all executives in FY23. Our MSCI ESG Rating increased from BBB to A in FY22, and our FTSE Russell ESG Rating increased from 2.8 to 3.3. Paychex is a component of the FTSE4GOOD Index Series.
To learn more about Paychex's commitment to corporate social responsibility click here.
To learn more about Paychex's commitment to corporate social responsibility click here.