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The Effects of CEO Pay Structure on Corporate Social Performance

The Effects of CEO Pay Structure on Corporate Social Performance Corporate social performance (CSP) is increasingly viewed as an important business outcome by researchers, investors, and society as a whole. Furthermore, empirical research indicates that CSP is positively related to corporate financial performance. These considerations lead to the question of whether CEO pay is properly structured to provide incentive to the CEO to improve firm CSP. In a sample of 313 firms, the authors found that a short-term CEO pay focus was negatively related to CSP, whereas a long-term focus was positively related to CSP. Implications of these results for future research and CEO pay design are presented. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Management SAGE

The Effects of CEO Pay Structure on Corporate Social Performance

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References (43)

Publisher
SAGE
Copyright
Copyright © by SAGE Publications
ISSN
0149-2063
eISSN
1557-1211
DOI
10.1177/0149206305280113
Publisher site
See Article on Publisher Site

Abstract

Corporate social performance (CSP) is increasingly viewed as an important business outcome by researchers, investors, and society as a whole. Furthermore, empirical research indicates that CSP is positively related to corporate financial performance. These considerations lead to the question of whether CEO pay is properly structured to provide incentive to the CEO to improve firm CSP. In a sample of 313 firms, the authors found that a short-term CEO pay focus was negatively related to CSP, whereas a long-term focus was positively related to CSP. Implications of these results for future research and CEO pay design are presented.

Journal

Journal of ManagementSAGE

Published: Jun 1, 2006

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