Main Effects of Executive Pay and Board Diversity on Sustainability: Evidence from the Top Global 100 Firms

Abstract

Water productivity has become a major driver of the current sustainability wave in the business world. However, there is scant research on factors that drive sustainability at the firm level. Our study examines the main and interaction effects of “CEO-to-average worker pay†and “gender diversity on board of directors†on water productivity at the firm level. Based on data from the top Global 100 sustainable firms, my study shows that both “CEOto-average worker pay†and “gender diversity on board of directors†have positive main effects but a negative interaction effect on water productivity at the firm level.