ESG-based executive compensation: state of art and future research directions

Purpose– This paper aims to systematize the literature focused on the environmental, social and governance(ESG)-basedexecutivecompensation(ESGBEC). Design/methodology/approach– This paper carries out a systematic literature review analysis, where the first phase of systematic literature review returns the final set of sampled articles analyzed in the second phase with different quantitative bibliometric analyses (BA) able to provide an overview of the state of the art (performance analysis) and to identify the clusters of existing themes (science mapping). A manual content analysis (CA) is carried out in the third phase to validate clusters derived by BA and addotheremergingresearchclustersonESGBEC. Findings– Several research themesareidentified and grouped, according to our owndeveloped research framework, into the following building blocks: ESG factors which influence executive compensation structure, ESGBEC compensationstructure andthecorporateoutcomesofESGBEC. Research limitations/implications– The study is not exempt from limitations. The use of specific keywords, database and tools introduces subjectivity, despite the methodological rigour adopted in the paper. Furthermore, adopting a specific theoretical framework guides the discussion of results. Originality/value– This research contributes to the domains of the ESGBEC literature stream by providing a critical overview of the literature through the lens of our original research framework, in the light of which the literature review findings are presented and future research avenues are identified.