Improving executive compensation in the fossil fuel sector to influence green behaviors

Rohan Crichton; Paul Shrivastava; Thomas Walker; Faraz Farhidi; Vindhya Weeratunga; Douglas Renwick

doi:10.1177/23970022221137657

Improving executive compensation in the fossil fuel sector to influence green behaviors

Rohan Crichton, Paul Shrivastava, Thomas Walker, Faraz Farhidi, Vindhya Weeratunga, Douglas Renwick

Management and Organization

Research output: Contribution to journal › Article › peer-review

4 Scopus citations

Abstract

The effects of climate change are being felt around the world, and the calls to mitigate are growing louder. In hopes of responding to this call, we examine strategic compensation practices as innovative solutions for tackling climate change. We employ a fixed panel analysis and examine organizational data from an array of global fossil fuel organizations—arguably the principal climate change contributors. Our findings suggest that executive stock-option compensation oriented around a 3-year or more vesting period will enhance organizational green behaviors. The contributions of this study add to the green human resource management literature in offering new perspectives on how compensation practices can enhance green behaviors and clarify key misconceptions related to linking sustainability targets to firm-level compensation schemes.

Original language	English (US)
Pages (from-to)	199-220
Number of pages	22
Journal	German Journal of Human Resource Management
Volume	37
Issue number	3
DOIs	https://doi.org/10.1177/23970022221137657
State	Published - Aug 2023

All Science Journal Classification (ASJC) codes

Organizational Behavior and Human Resource Management

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1177/23970022221137657

Cite this

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abstract = "The effects of climate change are being felt around the world, and the calls to mitigate are growing louder. In hopes of responding to this call, we examine strategic compensation practices as innovative solutions for tackling climate change. We employ a fixed panel analysis and examine organizational data from an array of global fossil fuel organizations—arguably the principal climate change contributors. Our findings suggest that executive stock-option compensation oriented around a 3-year or more vesting period will enhance organizational green behaviors. The contributions of this study add to the green human resource management literature in offering new perspectives on how compensation practices can enhance green behaviors and clarify key misconceptions related to linking sustainability targets to firm-level compensation schemes.",

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AU - Walker, Thomas

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AU - Weeratunga, Vindhya

AU - Renwick, Douglas

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AB - The effects of climate change are being felt around the world, and the calls to mitigate are growing louder. In hopes of responding to this call, we examine strategic compensation practices as innovative solutions for tackling climate change. We employ a fixed panel analysis and examine organizational data from an array of global fossil fuel organizations—arguably the principal climate change contributors. Our findings suggest that executive stock-option compensation oriented around a 3-year or more vesting period will enhance organizational green behaviors. The contributions of this study add to the green human resource management literature in offering new perspectives on how compensation practices can enhance green behaviors and clarify key misconceptions related to linking sustainability targets to firm-level compensation schemes.

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Improving executive compensation in the fossil fuel sector to influence green behaviors

Abstract

All Science Journal Classification (ASJC) codes

UN SDGs

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