Do Green Boards Create Green Incentives?
Mendiratta, Esha Decramer, Adelien Loyens, Said Oehmichen, Jana
Mendiratta, Esha
Decramer, Adelien
Loyens, Said
Oehmichen, Jana
Publication Type
Conference Proceeding
Editor
Supervisor
Publication Year
2022-08
Journal
Book
Academy of Management Proceedings
Publication Volume
2022
Publication Issue
1
Publication Begin page
Publication End page
Publication Number of pages
Collections
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
Rewards, Sustainability