From Fiduciary Duty to Impact Fidelity: Managerial Compensation in Impact Investing

This article investigates the evolution from traditional fiduciary duty to "impact fidelity" in managerial compensation within impact investing. It explores how executive incentives can be aligned with social and environmental goals, addressing agency issues inherent in balancing financial returns with social impact. The authors analyse current compensation structures and propose frameworks to better integrate impact metrics into performance evaluations, aiming to foster greater accountability and drive genuine impact-oriented decision-making within investment firms.