Carbon Performance and Executive Compensation: The Moderating Role of Governance
研究了28个国家1122家公司18年的数据，发现高管薪酬与碳减排行动正相关但与碳强度负相关，且公司治理和国家治理质量会调节这一关系。
ABSTRACT Amid growing global emphasis on corporate environmental responsibility, the role of executive compensation (EC) in driving carbon performance (CP) remains underexplored, particularly in a cross–country context. This paper addresses this limitation directly by examining the association between EC and CP, considering the moderating effects of corporate governance (CG) and national governance quality (NGI). Using a panel dataset of 1122 firms across 28 countries over an 18‐year period (i.e., 13,413 firm‐year observations), we find that EC is positively associated with carbon reduction initiatives (process‐oriented CP) while negatively associated with carbon intensity (poor outcome‐oriented CP). Our results further reveal that CG mechanisms, such as board size, independent directors, CEO–chair duality, gender diversity and sustainability committee, moderate the EC–CP nexus, strengthening the alignment between executive incentives and environmental objectives. Additionally, firms in countries with low NGI rely more on EC to achieve meaningful CP improvements. These findings remain robust across alternative model specifications and endogeneity tests. By integrating insights from neo–institutional theory, this study contributes to the literature by demonstrating how governance structures at both firm and national levels shape the effectiveness of EC in promoting sustainability. Our results offer practical implications for policymakers, investors and corporate leaders seeking to design governance frameworks that strengthen the link between executive incentives and CP in diverse institutional contexts.