Impact Linked Compensation

Is impact linked compensation the missing piece to drive accountability for impact and avoid impact washing? If so, how do you even start to approach the design and implementation?We conducted the largest study to date on the fund managers (GPs) who use impact linked compensation, and the limited partners (LPs) who invest in them. This research was conducted in partnership with The ImPact and with support from The Tipping Point Fund on Impact Investing.The report provides a comprehensive guide for understanding ILC within the intricate dynamics of fund structures, portfolio compositions, and relationships with asset owners using a Framework for Intentional Design and Management, Case Studies and Future-Focused Insights

Who are we?

This project is being conducted in partnership with The ImPact with funding from the Tipping Point Fund on Impact Investing. You can read more about our research team below.

“It’s critical to find ways to hold investors accountable not just for their financial performance but also for their impact performance. Impact-linked compensation represents a powerful tool that can help better align investor decision-making with impact outcomes.”- Jessie Duncan, Lead Program Officer, Tipping Point Fund on Impact Investing

Previous Convenings

Convening #1: May 24th, 10AM EST / 4PM CET
This served as an introduction to the study and highlighted some early survey results along with a discussion on the three pillars of the research
Case study from Prime Coalition
Convening #2: Governance - July 19th, 10AM EST / 4PM CET
Impact is multidimensional and constantly changing based on the business model, environment and stakeholders needs. This session explored governance models that account for this flexibility but aim to have managers accountable to their impact objectives.
Case study from New Forests
Case study from British International Investments
Convening #3: Yardstick - August 8th, 10AM EST / 4PM CET
Choosing the ‘right’ metrics and deciding the ‘right’ goals/targets for these metrics is the core to what ILC is based on. This session explored different ways that relevant KPIs are chosen and goals set that are ambitious.
Case study from BlueMark & LGT
Convening #4: Mechanism - September 5th, 10AM EST / 4PM CETHow do managers right-size the right ‘mechanism’ for linking ILC to? This session explored the different mechanisms funds use to link impact to compensation with a focus on bonus and carry structures.
Case from Calvert Impact on Bonus
Carry study from Alive Ventures on Carry
Convening #5: Putting ILC Learning into Practice - November 8th, 10AM EST / 4PM CETThis convening highlighted the key themes and learnings from the survey results, previous convenings and interviews.

Explore Convening Recordings in our Resources section below.

Who are we working with?

This project would not be possible without input and support from a number of leading impact investing ecosystem players.If you are interested in collaborating with us on this project, let us know!

Research Team

Aunnie Patton Power

Research Lead

Aunnie Patton Power is an an ImPact Fellow, Academic, Advisor, Author and Angel Investor with a focus on directing innovative financing to organizations that create positive social and environmental impact. Aunnie works with funders globally to design innovative financing instruments and deploy capital.

Peter Chakaniza

Research Assistant

Peter is a Project Manager at Intellimpact
with experience in Innovative Finance Research and Programme Facilitation.
He's also a an Innovative Finance Consultant at the Bertha Center for Social Innovation and Entrepreneurship who helps manage their Innovative Finance MOOC.

Riannah Burns

Research Assistant

Riannah is a Social Finance Analyst at White Box Enterprises and a Research Assistant at Intellimpact. Riannah’s main role as a Social Finance Analyst at White Box Enterprises, she has helped social enterprises raise over $18 million to create life changing jobs for overlooked and underserved Australians.

Juan Jardon Pina

Research Assistant

Juan is an Investment Officer at Deetken Impact where he analyzes investment opportunities and participates in due diligence processes for the Alternative Finance funds. He has experience in impact investing, innovative finance research, investment banking, and public policy in finance and foreign trade topics

Karim Harji


Karim Harji enables people and organizations to describe, measure, and improve their social impact. He is the Programme Director of the Oxford Impact Measurement Programme at the Said Business School, University of Oxford; and the Managing Director at Evalysis.

Ellen Maginnis


Ellen Maginnis works with key decision-makers to identify, measure, manage, and improve the positive social and environmental impact of their organizations. In addition to working directly with organizations, she has helped to develop several impact measurement and management standards.

Anne Tucker


Anne Tucker is a lawyer, expert in impact investment contracting working with the Impact Finance Research Consortium, author, and academic who researches and teaches the laws that facilitate financing for global social enterprises.


Literature Review

Looking to learn more about impact-linked compensation in impact investing? Check out our literature review, which summarizes the current state of knowledge on this topic. Our review includes insights from leading academics, practitioners, and thought leaders in the field, and provides an in-depth analysis of the challenges and opportunities of incorporating impact into compensation structures. To access our literature review, simply click the link below.Please note: this literature review is a work in progress. We'd love your comments as we continue to build it out, so feel free to let us know what you think or what we are missing.

Impact Linked Compensation Convening Recordings

We held our first convening on May 24th 2023, and have held more since then.If you'd like to access previous convening recordings, you can access them using the links below. Notes and slides can be found in the video descriptions.

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