Do green boards create green incentives? The impact of environmental experts on boards on the inclusion of environmental criteria in ceo compensation
Mendiratta, Esha Baeten, Xavier Decramer, Adelein Fehre, Kerstin Loyens, Said Oehmichen, Jana
Mendiratta, Esha
Baeten, Xavier
Decramer, Adelein
Fehre, Kerstin
Loyens, Said
Oehmichen, Jana
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Publication Type
Conference Presentation
Editor
Supervisor
Publication Year
2022
Journal
Book
Academy of Management Annual Meeting Proceedings
Publication Volume
Publication Issue
Publication Begin page
1
Publication End page
6
Publication NUmber of pages
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Abstract
Aligning CEO compensation with environmental sustainability is one of the primary channels through which firms which firms can improve their environmentally sustainability. In this study, we investigate the effect of board-level environmental expertise on the use of environmental criteria in CEO compensation. Using hand-collected data on environmental criteria from a European sample, we show that environmental expertise is positively associated with the use of environmental criteria. Moreover, we explore several mechanisms for the use of expertise, and find that in countries with lower environmental awareness, environmental expertise is more strongly associated with the likelihood of using environmental criteria.
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Keywords
CEO compensation, Environmental Sustainability