TY - JOUR

T1 - Archival research on sustainability-related executive compensation.

T2 - A literature review of the status quo and future improvements

AU - Velte, Patrick

N1 - Publisher Copyright: © 2024 The Authors. Corporate Social Responsibility and Environmental Management published by ERP Environment and John Wiley & Sons Ltd.

PY - 2024/7

Y1 - 2024/7

N2 - This literature review summarizes previous quantitative archival research on sustainability-related executive compensation (SREC) as the overarching research method in this field. Based on stakeholder agency theory, we included 66 peer-reviewed studies on the determinants (governance, financial, and sustainability drivers) and consequences of SREC on firm value (financial and sustainability consequences). Regarding SREC, we differentiated between the Chief Executive Officer (CEO) and the total executive level. Although we note a lower attraction of SREC research on possible determinants, there are clear indications that SREC has a positive effect on sustainability performance. In contrast to the business case argument for sustainability, this is not true for financial performance. We find major limitations and research gaps in previous studies that should be recognized in future studies (e.g., differentiation between symbolic and substantive use of SREC). Our results are mainly important for researchers, business practice and regulatory bodies.

AB - This literature review summarizes previous quantitative archival research on sustainability-related executive compensation (SREC) as the overarching research method in this field. Based on stakeholder agency theory, we included 66 peer-reviewed studies on the determinants (governance, financial, and sustainability drivers) and consequences of SREC on firm value (financial and sustainability consequences). Regarding SREC, we differentiated between the Chief Executive Officer (CEO) and the total executive level. Although we note a lower attraction of SREC research on possible determinants, there are clear indications that SREC has a positive effect on sustainability performance. In contrast to the business case argument for sustainability, this is not true for financial performance. We find major limitations and research gaps in previous studies that should be recognized in future studies (e.g., differentiation between symbolic and substantive use of SREC). Our results are mainly important for researchers, business practice and regulatory bodies.

KW - Management studies

KW - board of directors

KW - CEO

KW - corporate governance

KW - CSR performance

KW - executive compensation

KW - stakeholder agency theory

KW - Sustainability Science

UR - http://www.scopus.com/inward/record.url?scp=85185477519&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/42b7411d-581f-3a45-a98d-1259c4768232/

U2 - 10.1002/csr.2741

DO - 10.1002/csr.2741

M3 - Scientific review articles

VL - 31

SP - 3119

EP - 3147

JO - Corporate Social Responsibility and Environmental Management

JF - Corporate Social Responsibility and Environmental Management

SN - 1535-3958

IS - 4

ER -