Executive compensation tied to ESG performance : international evidence

Shira Cohen, Igor Kadach, Gaizka Ormazabal, and Stefan Reichelstein

This paper examines the reliance on ESG metrics in executive compensation contracts. In our sample of international publicly traded firms, a rapidly growing fraction incorporate ESG metrics in the compensation schemes of their top executives. Our analysis links the reliance on these metrics to firm fundamentals, the geographic location of firms, as well as the influence of institutional shareholders. Our findings also suggest that the adoption of ESG variables in managerial performance measures is accompanied by improvements in ESG performance and meaningful changes in the compensation of executives.

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Year of publication:	[2022]
Authors:	Cohen, Shira ; Kadach, Igor ; Ormazabal, Gaizka ; Reichelstein, Stefan
Publisher:	Mannheim, Germany : ZEW - Leibniz Centre for European Economic Research
Subject:	ESG metrics \| Executive compensation \| Institutional ownership \| Führungskräfte \| Managers \| Managervergütung \| Institutioneller Investor \| Institutional investor \| Eigentümerstruktur \| Ownership structure \| Vergütungssystem \| Compensation system \| Corporate Governance \| Corporate governance \| Prinzipal-Agent-Theorie \| Agency theory \| Welt \| World \| Leistungsentgelt \| Performance pay \| Performance-Messung \| Performance measurement

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Extent:	1 Online-Ressource (57 Seiten) Illustrationen
Series:	Discussion paper. - [Mannheim] : [ZEW], ZDB-ID 2985404-0. - Vol. no. 22, 051 (10/2022)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/266250 [Handle]
Classification:	M12 - Personnel Management ; M41 - Accounting ; Q54 - Climate; Natural Disasters
Source:	ECONIS - Online Catalogue of the ZBW

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