Some CEOs Are Hearing A New Message: Act On Climate, Or We'll Cut Your Pay

Corporate America wants you to know that it takes climate change seriously. But how can you tell if businesses will follow through?

Here's one idea that's catching on: Cut the pay of corporate leadership if they don't meet their climate goals.

Though the practice is not widespread, several companies — including oil companies like Shell, Murphy Oil and the refiner Valero — are embracing it, often under pressure from activist shareholders .

"We believe that compensation drives outcomes," says Danielle Fugere, the president of As You Sow, a nonprofit that works in shareholder activism. "So when an executive team is incentivized to actually accomplish a goal, then they're more likely to do so."