An examination of the structure of executive compensation and sustainability
Many studies have been done on the relationship between executive compensation against economic, environmental and social performance, which are the underlying elements of sustainability. This paper seeks to understand whether there is a direct link between compensation and sustainability, and came...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2011
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/46352 |
| _version_ | 1811693031159496704 |
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| author | Teng, Arthur Er, Kelly Ong, Jialin |
| author2 | Mak Wai Yeong |
| author_facet | Mak Wai Yeong Teng, Arthur Er, Kelly Ong, Jialin |
| author_sort | Teng, Arthur |
| collection | NTU |
| description | Many studies have been done on the relationship between executive compensation against economic, environmental and social performance, which are the underlying elements of sustainability. This paper seeks to understand whether there is a direct link between compensation and sustainability, and came up with two general hypotheses. We gathered data from IT firms listed in the S&P 500 from the period between 2006 and 2008.
The study concludes that there is a strong negative association between percentage of Salary and Total Sustainability and Sustainability Strengths and strong positive association between Salary and Sustainability Weakness. Secondly, we found that there is a strong positive relationship between number of Stock Options and Total Sustainability and Sustainability Strengths, while the relationship between number of Stock Options and Sustainability Weakness was inconclusive.
Our findings may be useful in providing important insights into sustainability and compensation structure and provide guidance to firms when designing compensation plans. Further exploration by incorporating bonus into the study and implications for practice and research are also discussed. |
| first_indexed | 2024-10-01T06:45:13Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/46352 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T06:45:13Z |
| publishDate | 2011 |
| record_format | dspace |
| spelling | ntu-10356/463522023-05-19T03:30:04Z An examination of the structure of executive compensation and sustainability Teng, Arthur Er, Kelly Ong, Jialin Mak Wai Yeong Nanyang Business School DRNTU::Business::Accounting::Employee compensation DRNTU::Business::Accounting::Social accounting Many studies have been done on the relationship between executive compensation against economic, environmental and social performance, which are the underlying elements of sustainability. This paper seeks to understand whether there is a direct link between compensation and sustainability, and came up with two general hypotheses. We gathered data from IT firms listed in the S&P 500 from the period between 2006 and 2008. The study concludes that there is a strong negative association between percentage of Salary and Total Sustainability and Sustainability Strengths and strong positive association between Salary and Sustainability Weakness. Secondly, we found that there is a strong positive relationship between number of Stock Options and Total Sustainability and Sustainability Strengths, while the relationship between number of Stock Options and Sustainability Weakness was inconclusive. Our findings may be useful in providing important insights into sustainability and compensation structure and provide guidance to firms when designing compensation plans. Further exploration by incorporating bonus into the study and implications for practice and research are also discussed. BUSINESS 2011-12-02T07:03:07Z 2011-12-02T07:03:07Z 2011 2011 Final Year Project (FYP) http://hdl.handle.net/10356/46352 en Nanyang Technological University 33 p. application/pdf |
| spellingShingle | DRNTU::Business::Accounting::Employee compensation DRNTU::Business::Accounting::Social accounting Teng, Arthur Er, Kelly Ong, Jialin An examination of the structure of executive compensation and sustainability |
| title | An examination of the structure of executive compensation and sustainability |
| title_full | An examination of the structure of executive compensation and sustainability |
| title_fullStr | An examination of the structure of executive compensation and sustainability |
| title_full_unstemmed | An examination of the structure of executive compensation and sustainability |
| title_short | An examination of the structure of executive compensation and sustainability |
| title_sort | examination of the structure of executive compensation and sustainability |
| topic | DRNTU::Business::Accounting::Employee compensation DRNTU::Business::Accounting::Social accounting |
| url | http://hdl.handle.net/10356/46352 |
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