Archival research on sustainability-related executive compensation. A literature review of the status quo and future improvements
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In: Corporate Social Responsibility and Environmental Management, Vol. 31, No. 4, 07.2024, p. 3119-3147.
Research output: Journal contributions › Scientific review articles › Research
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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 -