CEO power and CSR-linked compensation for corporate environmental responsibility: UK evidence

Abstract This paper examines how CEO power and CSR-linked compensation influences environmental performance. We investigate the role of managerial (proxied by duality presence executive directors on board), legitimate tenure), adopting three measures performance, including scores, carbon emission scores a composite index assessing level firm’s engagement in several practices. Analysing sample FTSE-All-Share companies for period 2011–2019, we find that CEOs who receive from activities are motivated to improve Moreover, newly appointed engage more initiatives, suggesting they use it as signal mitigate career concerns their early tenure, whereas with less projects due costs associated them. These effects stronger firms independent diverse boards, operating environmentally sensitive sectors non-loss-making firms. study provides original evidence environmental-linked incentives managing impact optimising performance companies.