Can linking executive compensation to sustainability performance lead to a sustainable business model? Evidence of implementation from enterprises around the world

Nirjhar Nigam (), Cristiane Benetti () and Sondes Mbarek ()
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Nirjhar Nigam: ICN Business School, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine
Cristiane Benetti: ICN Business School, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine
Sondes Mbarek: ICN Business School, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine

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Abstract: Making top executives accountable for their companies' sustainability performance demonstrates the seriousness of those companies' efforts to combat adverse environmental impacts caused by business practices and become sustainable corporate citizens. Corporations' sustainability goals should be reflected in top executives' remuneration and not merely in reports. Linking executive compensation with a company's sustainability goals may result in a better model for sustainable corporate health. Decision makers (CEO, CFO) that fail to support the mission of sustainability are unlikely to frame optimum policies for their companies.

Keywords: Corporate Finance; Governance; Mergers; Acquisitions; Restructuring; Corporate Culture; Diversity; Social Responsibility (search for similar items in EconPapers)
Date: 2018-11
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Citations: View citations in EconPapers (2)

Published in Strategic Change, 2018, 27 (6), pp.571-585. ⟨10.1002/jsc.2240⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01992930

DOI: 10.1002/jsc.2240

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