Work

Executive Compensation in Socially Responsible Firms

Year: 2006

Type: article

Abstract: This study examines chief executive officer (CEO) compensation and turnover in socially responsible (SR) firms. We compare characteristics of SR firms with a matched sample of firms based on industry and size. Analysis of CEO compensation indicates that the link between CEO pay and firm performance is weaker for SR firms than for non‐SR firms. CEO turnover tests indicate that SR firms are more likely to experience CEO turnover following poor performance. Stock option grants to CEOs of SR firms do not appear to result in future risk‐taking behaviour, whereas such grants are significantly related to future risk at non‐SR firms.

Source: Corporate Governance An International Review

DOI: 10.1111/j.1467-8683.2006.00517.x

Authors: Melissa B. Frye, Edward Nelling, Elizabeth Webb

Institutions: University of Central Florida, Drexel University, Federal Reserve Bank of Philadelphia

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2118245017

FWCI: 9.921

Cites: 20

Cited by: 75

Related to: 10