Mapping the determinants of carbon-related CEO compensation: a multilevel approach

Winschel, Julija

doi:10.1108/sbr-06-2021-0085

Cited by 6 publications

(6 citation statements)

References 176 publications

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“…Accordingly, variable compensation should be linked to the contribution of a member of the corporate directors to the strategy and sustainability of the company (European Commission, 2022). This incentive function has great significance with regard to strengthening the European Green Deal project and the goal of climate neutrality (Winschel, 2021). In this context, the CSRD requires a description of the company's policy regarding sustainability issues.…”

Section: Discussionmentioning

confidence: 99%

Corporate climate reporting of European banks: Are these institutions compliant with climate issues?

2022

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This article focuses on climate disclosures from STOXX Europe 600 banks during the 2017–2020 period, comprising 152 company years. Specifically, we analyze compliance based on general and bank‐specific recommendations of the Task Force on Climate‐related Financial Disclosures. Although our results indicate an overall increase in climate reporting quality over time, we identify major reporting gaps, such as consideration of forward‐looking information (particularly related to scenario analyses). We also stress that the bank‐specific recommendations are taken into account rather insufficiently. This study stands to benefit mostly researchers, business practices, and regulatory bodies owing to the future standardization of European and global sustainability reporting frameworks.

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Section: Discussionmentioning

confidence: 99%

Corporate climate reporting of European banks: Are these institutions compliant with climate issues?

2022

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“…Figure 1 provides an overview of the conceptual framework for the literature review. In accordance with prior frameworks (e.g., Winschel, 2022), we stress the main firm‐ and country‐related determinants of SREC and its effect on firm value. According to Winschel (2022), governance aspects are one of the major determinants of SREC.…”

Section: Conceptual Framework Objectives and Research Methodsmentioning

confidence: 68%

“…In accordance with prior frameworks (e.g., Winschel, 2022), we stress the main firm‐ and country‐related determinants of SREC and its effect on firm value. According to Winschel (2022), governance aspects are one of the major determinants of SREC. Based on our stakeholder agency‐theoretical framework, opportunistic management behavior can be linked to SREC, leading to a symbolic implementation in contrast to stakeholder demands.…”

Section: Conceptual Framework Objectives and Research Methodsmentioning

confidence: 68%

“…Proper governance mechanisms at the corporate and country levels are needed as a monitoring tool to increase the sensibility of the board to include SREC with high quality. Moreover, Winschel (2022) and Winschel and Stawinoga (2019) also highlighted the need for adequate financial and sustainability resources as a major requirement for SREC. Financial and sustainability slack increases the probability that firms will implement SREC as a substantive management tool in accordance with stakeholder preferences.…”

Section: Conceptual Framework Objectives and Research Methodsmentioning

confidence: 99%

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Archival research on sustainability‐related executive compensation. A literature review of the status quo and future improvements

Velte

2024

Corp Soc Responsibility Env

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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.

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“…In recent years, there has been growing interest in the relationship between corporate environmental performance, executive compensation, market value and the adoption of Say-on-Pay voting from a neo-institutional perspective (Adu et al, 2022b;Haque, 2017;Haque and Ntim, 2020;Luo et al, 2021;Winschel, 2021Winschel, , 2022. As a result, this research endeavors to bring fresh insights to the existing body of knowledge by examining the connections among carbon performance, executive compensation, market valuation and the adoption of "say on pay" voting.…”

Section: Introductionmentioning

confidence: 99%

Sustainability performance, executive compensation, market value, and say-on-pay voting adoption: evidence from the STOXX Europe 600

Issa,

Hanaysha

2023

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Purpose This study aims to investigate the link between carbon emissions and market value for nonfinancial companies in the STOXX Europe 600 index, with a specific focus on the moderating effect of executive compensation. Design/methodology/approach To achieve the study’s purpose, this study uses data from the STOXX Europe 600 index between 2010 and 2021. The researchers use ordinary least squares regression analysis to examine the relationship between carbon emissions and market value while taking into account the moderating effect of executive compensation. The study also uses additional tests, such as the dynamic two-step system generalized method of moments regression and the difference in differences method. Findings The study reveals four key findings. First, there is a statistically significant negative relationship between carbon emissions and market value. Second, executive compensation has a negative moderating effect on the association between carbon emissions and market value. Third, Say-on-Pay regulations can encourage companies to adopt environmentally responsible practices, which can positively impact their market value. Finally, the study shows that the Paris Agreement motivates companies to prioritize sustainability, leading to potentially higher market values for those that are more environmentally responsible. Practical implications This study highlights the importance of considering environmental sustainability in corporate decision-making. It suggests that prioritizing sustainability can lead to financial benefits, as companies with lower carbon emissions tend to have higher market values. The findings also have important implications for regulators and investors. Originality/value This study provides novel insights into the link between carbon emissions and market value and the moderating effect of executive compensation. It also sheds light on the potential impact of Say-on-Pay regulations and the Paris Agreement on corporate sustainability practices and market values.

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Mapping the determinants of carbon-related CEO compensation: a multilevel approach

Cited by 6 publications

References 176 publications

Corporate climate reporting of European banks: Are these institutions compliant with climate issues?

Corporate climate reporting of European banks: Are these institutions compliant with climate issues?

Archival research on sustainability‐related executive compensation. A literature review of the status quo and future improvements

Sustainability performance, executive compensation, market value, and say-on-pay voting adoption: evidence from the STOXX Europe 600

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