A COMMITMENT TO CHANGE? CEO PAY AND ALIGNMENT WITH ENVIRONMENTAL, SOCIAL, AND GOVERNANCE OBJECTIVES
Compensation committees traditionally seek to align executive pay with desired organizational outcomes. This qualitative study, published in our journal Corporate Ownership and Control examines whether the signatories made discernible changes to executive compensation structures to align executive incentives with a broader stakeholder view. The authors observe the compensation committee reports of 135 signatory firms’ proxy statements for the fiscal year ending 2020, to identify whether each firm’s incentive compensation structure included measures aligned with the firm’s commitment to a stakeholder focus. Nearly half of the sample firms continued to reward executives exclusively using measures to assess financial objectives, although thirteen made promises to include stakeholder corporate performance measures in their 2021 compensation programs.
#corporategovernance #boardofdirectors #stakeholders #CEO #CEOpay #firmperformance #finance
Find the full-text paper below
https://lnkd.in/dgD4C_3P