SFS Cavalcade North America 2024
Georgia State University | May 19-22, 2024
Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 1st May 2025, 10:21:34am EDT
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Session Overview |
Session | ||
Track T3-4: Corporate Theory
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Presentations | ||
Executive Compensation with Social and Environmental Performance 1Queen's University; 2HEC Montreal How to incentivize a manager to create value and be socially responsible? A manager can predict how his decisions will affect measures of social performance, and will therefore game an incentive system that relies on these measures. Still, we show that the compensation contract uses measures of social performance when the level of corporate social responsibility preferred by the board exceeds the one that maximizes the stock price. Relying on multiple measures based on different methodologies will generally mitigate inefficiencies due to gaming, i.e. harmonization of social performance measurement can backfire. This has normative implications for the regulation and harmonization of ESG measurement.
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