Research Of The Impact Of Enterprise Green Strategy On Executive Compensation

In the Harvard Business Review,2018,Burchman points out that many companies are making management reforms by motivating executives to achieve the goal of green sustainable development.At the same time,a reasonable and effective executive compensation contract mechanism is an important means to motivate executives to achieve the strategic objectives of the enterprise,so that their interests are closely related to the interests of the company.In the face of the trend of environmental regulation becoming more and more comprehensive,how can China's chemical enterprises rationally and effectively combine the realization of their green development goals with the efforts of executive compensation? This paper starts from this point.Empirical research shows that short-term executive compensation is positively correlated with corporate green comprehensive strategy and inverted "U" relationship with environmental integrity strategy.In addition,the traditional salary incentive mechanism based on principal-agent theory mostly links it with the short-term accounting performance of enterprises.Under the current situation of green sustainable development strategy becoming more and more common,can the efforts of executives be mainly measured by accounting performance? Taking this as an opportunity,this paper studies the relationship between environmental integrity green strategy and executive compensation performance in China's chemical enterprises.The empirical results show that environmental integrity strategy significantly improves the sensitivity of accounting performance,and the degree of improvement of private enterprises is higher than that of state-owned enterprises.In the chapter of policy and suggestion,it is considered that enterprises implementing environmental integrity strategy should reduce their pay-performance sensitivity.The innovation of this paper is to score the indexes of green comprehensive strategy and environmental integrity strategy for listed chemical enterprises in China through text analysis and Python code,and to preprocess and collect the text,and to explore the relationship between the output level of the company's strategy to the environment and the short-term incentive system of executive compensation.