경영자와 종업원의 보상비율과 ESG 성과와의 관계

[Purpose] This study investigates the nonlinear relationship between the compensation gap between executives and employees and firms’ environmental, social, and governance (ESG) performance. While prior research has largely focused on the effects of compensation disparity on financial outcomes, limited attention has been paid to its influence on nonfinancial performance, particularly ESG. [Methodology] This study analyzes firms listed on the Korea Stock Exchange from 2011 to 2023, utilizing ESG rating data provided by the Korea ESG Standards Institute (KCGS). Data on firm characteristics and performance－based compensation were collected from the TS 2000 database. Based on this data, a regression analysis was conducted to examine the nonlinear relationship between the executive－employee compensation ratio and ESG performance. [Findings] Using panel data analysis, we find evidence of an inverted U－shaped relationship：a moderate compensation gap enhances ESG performance by incentivizing executives toward sustainable practices, whereas an excessive gap adversely affects ESG outcomes, potentially due to internal discord and diminished employee morale. [Implications] The results suggest that fairness and balance in compensation systems are essential for promoting credible and effective ESG strategies.