Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/266250 
Year of Publication: 
2022
Series/Report no.: 
ZEW Discussion Papers No. 22-051
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
This paper examines the reliance on ESG metrics in executive compensation contracts. In our sample of international publicly traded firms, a rapidly growing fraction incorporate ESG metrics in the compensation schemes of their top executives. Our analysis links the reliance on these metrics to firm fundamentals, the geographic location of firms, as well as the influence of institutional shareholders. Our findings also suggest that the adoption of ESG variables in managerial performance measures is accompanied by improvements in ESG performance and meaningful changes in the compensation of executives.
Subjects: 
ESG metrics
Executive compensation
Institutional ownership
JEL: 
M12
M41
Q54
Document Type: 
Working Paper

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