The effects of CEO pay structure on corporate social performance

Corporate social peformance (CSP) is increasingly viewed as an important business outcome by researchers, investors, and society as a whole. Furthermore, empirical research indicates that CSP is positively related to corporate financial performance. These considerations lead to the question of whether CEO pay is proper v structured to provide incentive to the CEO to improve firm CSP In a sample of 313 firms, the authors found that a short-term CEO pay focus was negatively related to CSP whereas a long-term focus was positively related to CSR Implications of these results,for future research and CEO pay design are presented.