This study aims to explore whether ESG (Environmental,
Social, and Governance) scores incentivize the compensation of general managers
in publicly traded companies in Taiwan. We analyzed data from 2209 companies
during the period from 2015 to 2020, ultimately selecting 2188 company samples
with complete ESG evaluations and general manager compensation data for
research. Our primary finding is that while there is a significant positive
correlation between the number of Executive Compensation and ESG scores, there
is no clear relationship between the compensation of the general manager and
ESG scores. Additionally, we found that the size of the company and the debt
ratio significantly affect ESG scores. Our research results provide preliminary
empirical evidence for companies to formulate ESG-oriented compensation
strategies and suggest future research to delve into the complex relationship
between Executive Compensation and ESG performance.
