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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Nirjhar Nigam & Cristiane Benetti & Sondes Mbarek, 2018. "Can linking executive compensation to sustainability performance lead to a sustainable business model? Evidence of implementation from enterprises around the world," Post-Print hal-01992930, HAL.
    • Handle: RePEc:hal:journl:hal-01992930
    DOI: 10.1002/jsc.2240
    as

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    Cited by:

    1. Douglas A. Adu & Antoinette Flynn & Colette Grey, 2022. "Executive compensation and sustainable business practices: The moderating role of sustainability‐based compensation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 698-736, March.

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