Title

Executive compensation in socially responsible firms

Authors

Authors

M. B. Frye; E. Nelling;E. Webb

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

Corp. Gov.

Keywords

corporate social responsibility; executive remuneration; stakeholders; CORPORATE GOVERNANCE; PERFORMANCE; MANAGEMENT; PAY; ATTRACTIVENESS; INCENTIVES; Business; Business, Finance; Management

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.

Journal Title

Corporate Governance-an International Review

Volume

14

Issue/Number

5

Publication Date

1-1-2006

Document Type

Article

Language

English

First Page

446

Last Page

455

WOS Identifier

WOS:000240557900008

ISSN

0964-8410

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