Mechanisms of Management Adaptation to Sustainable Development Standards under the Condition of Global Changes

Companies play an important role in attaining sustainability, which stipulates the relevance of the search for mechanisms of management adaptation to sustainable development standards. The work aims at analysis of the available mechanisms of management adaptation to sustainable development standards with the use of financial stimuli. The main methods used in the work were regression analysis, ranking method, and descriptive method. A subset of the indicators of evaluation of the implemented sustainable practices in companies’ strategies was formed based on the work results. Using regression analysis, the influence of these indicators on the Sustainability Pay Link Variable Ratio was evaluated. This allowed us to verify whether executive compensation systems represent actual results in the area of sustainable development and whether their influence on these systems is significant. We also evaluated how evenly compensation planning considers economic, social and ecological aspects of sustainability. This enabled an analysis of the effectiveness of management adaptation mechanisms, which consider financial stimuli for attaining sustainability. The results showed that the approaches of the leading world companies mostly consider economic sustainability aspects. Herewith, social and ecological aspects are left without attention. The work presents formulated recommendations for management, which will enable enhancing the effectiveness of the available mechanisms of its adaptation to sustainable development principles. Balancing all sustainability aspects plays an important role in executive compensation planning.