Corporate commitment to sustainability – is it all hot air? A review of the linkage between executive pay and sustainable performance
Deegan, Craig and Islam, Muhammad Azizul 2010, Corporate commitment to sustainability – is it all hot air? A review of the linkage between executive pay and sustainable performance, in AFAANZ 2010 : Accounting and Finance Association of Australia and New Zealand Annual Conference, AFAANZ, [Christchurch, New Zealand], pp. 1-20.
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Title
Corporate commitment to sustainability – is it all hot air? A review of the linkage between executive pay and sustainable performance
Across time, companies are increasingly making public commitments to sustainable development and to reducing their impacts on climate change. Management remuneration plans (MRPs) are a key mechanism to motivate managers to achieve corporate goals. We review the MRPs negotiated with key management personnel in a sample of large Australian carbon-intensive companies. Our results show that, as in past decades, the companies in our sample have MRPs in place that continue to fixate on financial performance. We argue that this provides evidence of a disconnection between the sustainability-related rhetoric of the sample companies, and their ‘real’ organisational priorities.
Language
eng
Field of Research
150106 Sustainability Accounting and Reporting
Socio Economic Objective
910499 Management and Productivity not elsewhere classified