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Analyzing Corporate Social Responsibility, CEO Gender, and Compensation Structure: Evidence from U.S. Firms

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  • Dmitriy Chulkov

    (School of Business, Indiana University Kokomo, Kokomo, IN 46902, USA)

  • Joungyeon Kim

    (School of Business, Indiana University Kokomo, Kokomo, IN 46902, USA)

Abstract

This article examines how CEO compensation structure and CEO gender were associated with corporate social responsibility (CSR) performance in U.S. firms in the period between 2003 and 2013. Building on prior research in economics, finance, accounting, and management, which suggests gender differences in commitment to CSR, this study provides empirical evidence that female CEOs were positively associated with higher CSR performance. The analysis further shows that a higher proportion of equity in CEO compensation was positively associated with CSR, whereas higher proportions of cash bonuses and long-term incentive plans were negatively associated with CSR. Notably, a higher proportion of a cash bonus in CEO compensation further reduced CSR in firms led by female CEOs. These findings offer valuable insights for firms seeking to design executive compensation packages that align CEO behavior with the firms’ CSR objectives. This study contributes to the growing body of literature on CSR by providing empirical evidence on the role of CEO gender and compensation structure.

Suggested Citation

  • Dmitriy Chulkov & Joungyeon Kim, 2025. "Analyzing Corporate Social Responsibility, CEO Gender, and Compensation Structure: Evidence from U.S. Firms," JRFM, MDPI, vol. 18(1), pages 1-12, January.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:1:p:17-:d:1560179
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    References listed on IDEAS

    as
    1. Buthiena Kharabsheh & Hussam Al-Shammari & Khaled Bataineh, 2023. "Research on Corporate Social Responsibility: Insights and Future Directions," Administrative Sciences, MDPI, vol. 13(2), pages 1-11, February.
    2. Ferrell, Allen & Liang, Hao & Renneboog, Luc, 2016. "Socially responsible firms," Journal of Financial Economics, Elsevier, vol. 122(3), pages 585-606.
    3. Rui Albuquerque & Yrjö Koskinen & Chendi Zhang, 2019. "Corporate Social Responsibility and Firm Risk: Theory and Empirical Evidence," Management Science, INFORMS, vol. 65(10), pages 4451-4469, October.
    4. Atif Ikram & Zhichuan (Frank) Li & Travis MacDonald, 2020. "CEO Pay Sensitivity (Delta and Vega) and Corporate Social Responsibility," Sustainability, MDPI, vol. 12(19), pages 1-20, September.
    5. Hyeong Joon Kim & Seongjae Mun & Seung Hun Han, 2023. "Corporate social responsibility and the alignment of CEO and shareholders wealth: Does a strong alignment induce or restrain CSR?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 720-741, March.
    6. Buthiena Kharabsheh & Hussam A. Al-Shammari & Nosiaba Al-Numerat, 2022. "Corporate social responsibility and CEO compensation: the moderating effect of corporate governance," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2125523-212, December.
    7. Nekhili, Mehdi & Nagati, Haithem & Chtioui, Tawhid & Nekhili, Ali, 2017. "Gender-diverse board and the relevance of voluntary CSR reporting," International Review of Financial Analysis, Elsevier, vol. 50(C), pages 81-100.
    8. Jean McGuire & Jana Oehmichen & Michael Wolff & Roman Hilgers, 2019. "Do Contracts Make Them Care? The Impact of CEO Compensation Design on Corporate Social Performance," Journal of Business Ethics, Springer, vol. 157(2), pages 375-390, June.
    9. repec:hal:journl:hal-02311979 is not listed on IDEAS
    10. Stephen Bear & Noushi Rahman & Corinne Post, 2010. "The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation," Journal of Business Ethics, Springer, vol. 97(2), pages 207-221, December.
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