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Name: LUAN GOMES ROCHA
Publication date: 13/02/2026
Examining board:
Name |
Role |
|---|---|
| DIANE ROSSI MAXIMIANO REINA | Presidente |
| LUIZ CLAUDIO LOUZADA | Examinador Interno |
| SIRLEI LEMES | Examinador Externo |
Summary: Executive compensation has been recognized as an important mechanism to align managers’
interests with corporate sustainability goals. However, the effectiveness of this mechanism
may be affected by the organizational life-cycle stage at which firms operate. Therefore, this
study aims to examine the association between executive compensation and ESG
(Environmental, Social, and Governance) performance, while accounting for the specificities
of the different stages of the organizational life cycle. The sample comprises 9,674
observations from 2,094 firms belonging to BRICS countries. The study adopts a quantitative
approach, with data analyzed using an OLS regression model with robust standard errors
clustered by industry. The results indicate that executive compensation is positively
associated with ESG performance, though the strength of this relationship varies across life
cycle stages. This association is more pronounced in the maturity stage and weaker in the
introduction and decline phases. Among the ESG pillars, the social dimension showed the
highest sensitivity to executive compensation. The findings strengthen both the theoretical
and practical understanding of the relationship between compensation and corporate
sustainability, providing useful evidence for aligning business policies with ESG objectives.
