Scholarlink

<p>This study examines how executive compensation systems can incorporate environmental, social, and governance (ESG) objectives to support sustainable corporate behavior. It develops a&#xa0;conceptual framework that specifies key principles and design characteristics of ESG-linked incentives and applies this framework to the analysis of executive pay practices among HDAX-listed German firms. Using a&#xa0;systematic content analysis of remuneration disclosures for 2021 and 2022, the study identifies considerable heterogeneity in the structure and prevalence of ESG-related pay components. Based on these insights, a&#xa0;composite measure of ESG incentive quality is proposed and empirically validated. The results indicate that higher-quality ESG incentives are positively associated with firms’ ESG performance. The study contributes to the literature on executive compensation and corporate sustainability governance by advancing the conceptual understanding of ESG-linked pay and providing empirical evidence on its relevance for sustainable firm outcomes.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Linking Executive Pay to ESG Criteria: An Analysis of Current Practice in German Listed Firms

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2026年3月1日

查看全文
  • Franziska Spallek,
  • Karola Bastini

摘要

This study examines how executive compensation systems can incorporate environmental, social, and governance (ESG) objectives to support sustainable corporate behavior. It develops a conceptual framework that specifies key principles and design characteristics of ESG-linked incentives and applies this framework to the analysis of executive pay practices among HDAX-listed German firms. Using a systematic content analysis of remuneration disclosures for 2021 and 2022, the study identifies considerable heterogeneity in the structure and prevalence of ESG-related pay components. Based on these insights, a composite measure of ESG incentive quality is proposed and empirically validated. The results indicate that higher-quality ESG incentives are positively associated with firms’ ESG performance. The study contributes to the literature on executive compensation and corporate sustainability governance by advancing the conceptual understanding of ESG-linked pay and providing empirical evidence on its relevance for sustainable firm outcomes.