Record Details

ESG performance measures for executive pay: Delphi inquiry strategy and experts’ opinion

Acta Commercii

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Title ESG performance measures for executive pay: Delphi inquiry strategy and experts’ opinion
Creator Matemane, Reon Moloi, Tankiso Adelowotan, Michael
Subject Accounting Delphi; experts; Environmental, social and governance (ESG); nonfinancial; performance measures; executive compensation
Description Orientation: Rising levels of executive compensation amidst the widening inequality, unemployment, poverty and other socio-economic challenges have raised questions among policymakers, academics and practitioners alike on the best ways to resolve this conundrum.Research purpose: The main objective of this study was to identify a composite mix of environmental, social and governance (ESG) indicators that can be used in executive compensation plans.Motivation for the study: Whereas the importance of incorporating the ESG in executive compensation plans is well documented, it is not known which indicators are appropriate and can be used in the South African context.Research design, approach and method: A sequential exploratory research design was used in this study. The ESG-based indicators were identified from the literature and then subjected to three rounds of surveys in a Delphi enquiry strategy.Main findings: An eclectic mix of nonfinancial performance measures (NFPMs) based on the ESG philosophy were identified, confirmed and validated by a diverse team of international experts.Practical/managerial implications: In order to curb rising executive compensation and to disincentivise short-termism associated with sole reliance on profits as the only yardstick for performance, NFPMs identified in this study should be integrated into the executive compensation designs.Contribution/value-add: On an empirical front, the study proffers novel NFPMs for executive compensation plans that are predicated on ESG philosophy. The methodological contribution lies in the use of a Delphi inquiry strategy, which has never been used in the area of executive compensation.
Publisher AOSIS
Contributor University of Pretoria and University of Johannesburg
Date 2022-11-14
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion — Delphi inquiry strategy
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/ac.v22i1.1072
Source Acta Commercii; Vol 22, No 1 (2022); 14 pages 1684-1999 2413-1903
Language eng
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Coverage South Africa 2022 Panel of experts
Rights Copyright (c) 2022 Reon Matemane, Tankiso Moloi, Michael Adelowotan