Papa Johns adds ESG incentives to compensation


By Alicia Kelso, RestaurantDive

May 5, 2022


Dive Brief:


·         Papa Johns released its 2021 Corporate Responsibility Report Wednesday, which includes a new environmental, social and governance incentive tied to corporate bonuses for eligible employees and executives. According to the company, Papa Johns is the first major U.S. pizza delivery chain to announce ESG goals linked to incentive compensation.

·         According to an email from Papa Johns, the ESG performance metrics include workforce diversity, clean ingredients and environmental impacts, among other areas measure for the management incentive program.

·         This announcement follows similar statements from McDonald’s, Starbucks, Wendy’s and Chipotle as more companies tie corporate compensation to ESG goals.


Dive Insight:


While Wendy’s and Chipotle’s ESG incentives are tied specifically to executive compensations, Papa Johns notes its ESG bonuses are available all active, full-time corporate team members. This could create additional motivation for employees to carry out the work and broaden buy-in for such efforts across the system. 


According to Institutional Shareholder Services ESG, the proportion of pay tied to corporate responsibility has increased to over 20% since 2018, when it was only 7% of pay...


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