Principles of Responsible Remuneration (PRR)

Executive remuneration is a lever for guiding corporate behaviour.
It is
the truest expression of a corporation’s real priorities.

Principles of Responsible Remuneration (PRR)

CEOs and board members are increasingly expected to lead a positive change and contribute to a more sustainable economy, which requires making different corporate decisions. Executive remuneration is a lever for guiding corporate behaviour and is the truest expression of a corporation’s real priorities. Reward Value developed the Principles of Responsible Remuneration to support and accelerate a positive global transition and to stimulate progress on the UN Global Compact SDGs.

The PRR are fundamental guidelines that can support businesses in their transition to become more sustainable and responsible.



A corporation’s remuneration policy will reflect and support its commitment to its stated purpose and values.


Remuneration design will include incentives and consequences for achieving or missing the corporation’s financial, environmental and social impact goals.


Remuneration will focus attention on topics with the greatest potential for impact.


Remuneration time frames will be chosen to favour long term value creation over short term financial results.


Remuneration decisions will be made by an independent board, with input from those parties whose interests are most impacted by the corporation’s activities.


Remuneration disclosures are transparent and comparable.

5 steps to Activate the Principles


Define the goal 

What does the company aim to achieve with this remuneration plan?How do these objectives link to the company’s purpose and strategy? 

The outcome of this step is a statement of intent; a declaration that informs all subsequent remuneration plan choices, and against which the remuneration plan will be evaluated.



Decide what matters 

How will progress be measured? On what topics does the company invite the world to measure its progress? What financial, social and environmental impact does the company expect to make by focusing on these topics?

Remuneration plans exist to spur meaningful change. For a plan to be credible, it must do more than allow easy rewards for the realisation of generic sustainability pledges.


Decide weightings 

What reward weighting does the company give to each topic identified in step 2? How do these weightings reflect the company’s stated purpose or mission? 

This step applies focus to ‘materially significant’ topics, against which executives will be evaluated for remuneration purposes.


Set time frames 

Within what time frames does the company want to achieve progress towards the ‘things that matter’ given the weights allocated in Step 3? How are these time frames written into the remuneration plan? 

This step clarifies what the company means, exactly, by terms such as short- and long-term.



Set targets

What targets will be used to evaluate progress toward the ‘things that matter’ given the weights allocated in Step 3? 

Incentives are credible and effective when they are given for achieving results beyond those that would have been achieved without executive intervention.


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“Something has to get done,
and someone has to do it." - Jeffrey Pfeffer


The Principles of Responsible Remuneration (PRR) offer a framework for accelerating sustainable business performance and purposeful executive behaviour. 

By becoming a signatory to the Principles your organisation confirms its endorsement of the Principles and expresses the ambition to implement them.


• Be recognised as a pioneer in the transition to responsible remuneration

• Learn from successful business cases and best practices

• Gain priority access to insights from our research findings

• Participate in experimental research

• Gain access to activation parties


Complete the signatory application form below.

We will send you the registration form for completion. After receipt of the registration form and payment of the annual fee you will be confirmed as a signatory to the Principles of Responsible Remuneration.