Journal of Business Ethics 157 (2):375-390 (2019)

Using the behavioral agency model, we analyze how two compensation design characteristics, pay-performance sensitivity and duration of CEO compensation, affect corporate social performance. We find that the performance sensitivity of CEO pay is negatively associated with poor social performance but also negatively affects strong social performance. These results suggest that pay-performance sensitivity increases the relevance of potential negative consequences of poor social performance. However, the ‘insurance’ benefits of strong social performance may also become less relevant. With respect to the duration of CEO compensation, we find that it reduces poor social performance. This finding confirms arguments that a long-term compensation time horizon increases the perceived threat that the negative effects of poor social performance will become visible. With our findings, we integrate behavioral agency theory with the traditional stakeholder views.
Keywords No keywords specified (fix it)
Categories (categorize this paper)
DOI 10.1007/s10551-017-3601-8
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy

Upload a copy of this paper     Check publisher's policy     Papers currently archived: 63,319
External links

Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library

References found in this work BETA

View all 21 references / Add more references

Citations of this work BETA

No citations found.

Add more citations

Similar books and articles

CEO Incentives and Corporate Social Performance.Jean McGuire, Sandra Dow & Kamal Argheyd - 2003 - Journal of Business Ethics 45 (4):341 - 359.
Executive Compensation and Earnings Persistence.Allan S. Ashley & Simon S. M. Yang - 2004 - Journal of Business Ethics 50 (4):369-382.


Added to PP index

Total views
14 ( #707,699 of 63,276 )

Recent downloads (6 months)
1 ( #447,034 of 63,276 )

How can I increase my downloads?


My notes