기업성과 및 규모가 경영자보상과 ESG 관계에 미치는 영향

[Purpose]This study seeks to determine the impact of executive compensation on a firm’s ESG rating and examines whether there are differences depending on firm size and performance. Prior studies have shown that managerial characteristics, such as overconfidence and compensation, affects ESG rating. However, the level of compensation for executives is high in large scale, and the better the performance, the higher the level of compensation for executives. Therefore, it seems necessary to examine impacts of the financial characteristics, such as scale and performance, on the relationship between executive compensation and ESG. [Methodology]Executive compensation data was obtained from TS－2000 D/B, corporate information provided by the Korea Listed Companies Association and analysis was conducted using ESG ratings provided by the Korea Institute of Corporate Governance and Sustainability(KCGS). [Findings]Empirical results showed that the higher the level of executive compensation, the higher the ESG rating. Above all, as a result of analyzing the groups separately using the size and performance of the company, it was found that there was a difference in the relationship between the level of compensation for executives and ESG ratings depending on the scale and performance of the company. [Implications]This study appears to be meaningful in that it analyzes not only the impact of executive compensation levels on ESG ratings, but also takes into account company performance and size. This study can suggest correlations with financial characteristics in relation to ESG ratings approached as non－financial performance measures. Additionally, these results are meaningful in suggesting that analysis of ESG ratings is necessary after controlling for financial characteristics.