TY - JOUR

T1 - Mapping the determinants of carbon-related CEO compensation

T2 - a multilevel approach

AU - Winschel, Julija

N1 - Publisher Copyright: © 2021, Emerald Publishing Limited.

PY - 2022/3/30

Y1 - 2022/3/30

N2 - Purpose: In view of the current climate change emergency and the growing importance of the climate-related accountability of companies, this paper aims to advance a comprehensive understanding of the determinants of carbon-related chief executive officer (CEO) compensation. Design/methodology/approach: Building on the agency-theoretical perspective on executive compensation and existing work in the fields of management, corporate governance, cultural studies, and behavioral science, this paper derives a multilevel framework of the determinants of carbon-related CEO compensation. Findings: This paper maps the determinants of carbon-related CEO compensation at the societal, organizational, group, and individual levels of analysis. It also provides research propositions on the determinants that can support and challenge the implementation of this instrument of environmental corporate governance. Originality/value: In the past literature, the determinants of carbon-related CEO compensation have remained largely unexplored. This paper contributes to the academic discussion on environmental corporate governance by showcasing the role of interlinkages among the determinants of carbon-related CEO compensation and the possible countervailing impacts. In view of the complex interdisciplinary nature of climate change impact, this paper encourages businesses practitioners and regulators to intensify their climate change mitigation efforts and delineates the levers at their disposal.

AB - Purpose: In view of the current climate change emergency and the growing importance of the climate-related accountability of companies, this paper aims to advance a comprehensive understanding of the determinants of carbon-related chief executive officer (CEO) compensation. Design/methodology/approach: Building on the agency-theoretical perspective on executive compensation and existing work in the fields of management, corporate governance, cultural studies, and behavioral science, this paper derives a multilevel framework of the determinants of carbon-related CEO compensation. Findings: This paper maps the determinants of carbon-related CEO compensation at the societal, organizational, group, and individual levels of analysis. It also provides research propositions on the determinants that can support and challenge the implementation of this instrument of environmental corporate governance. Originality/value: In the past literature, the determinants of carbon-related CEO compensation have remained largely unexplored. This paper contributes to the academic discussion on environmental corporate governance by showcasing the role of interlinkages among the determinants of carbon-related CEO compensation and the possible countervailing impacts. In view of the complex interdisciplinary nature of climate change impact, this paper encourages businesses practitioners and regulators to intensify their climate change mitigation efforts and delineates the levers at their disposal.

KW - Sustainability Governance

KW - Sustainability sciences, Management & Economics

KW - Behavioral agency theory

KW - Carbon-related CEO compensation

KW - Carbon-related management controls

KW - Conceptual analysis

KW - Corporate governance

KW - Stakeholder-agency theory

UR - http://www.scopus.com/inward/record.url?scp=85113133334&partnerID=8YFLogxK

U2 - 10.1108/SBR-06-2021-0085

DO - 10.1108/SBR-06-2021-0085

M3 - Journal articles

VL - 17

SP - 160

EP - 195

JO - Society and Business Review

JF - Society and Business Review

SN - 1746-5680

IS - 2

ER -