BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//132.216.98.100//NONSGML kigkonsult.se iCalcreator 2.20.4//
BEGIN:VEVENT
UID:20250816T152231EDT-9257M5VvR4@132.216.98.100
DTSTAMP:20250816T192231Z
DESCRIPTION:Clara Chen\n\nLillian and Morrie Moss Distinguished Professor i
 n Accountancy\n	University of Illinois Urbana Champaign\n\nConsequences of 
 Meeting or Missing ESG Targets in CEO Compensation Contracts\n\nDate: Mond
 ay\, April 28\, 2025\n	Time: 10:30 AM – 12:00 PM\n	Location: Bronfman buildi
 ng\, Room 245\n\n\nAbstract\n\nDespite an increasing trend of firms tying 
 CEO compensation to environmental\, social and governance (ESG) targets\, 
 there is a lack of empirical evidence on the consequences of meeting or mi
 ssing such targets. Using hand-collected data on ESG targets and their ach
 ievement disclosed in U.S. public firms’ proxy statements between 2006 and
  2020\, we examine the consequences of meeting or missing ESG targets in C
 EO compensation contracts. First\, we provide large-sample descriptive evi
 dence of the frequency\, type\, and achievement ratio of ESG targets in CE
 O compensation contracts. We document an increasing use of ESG targets in 
 CEO compensation contracts. We also document that\, on average\, firms ach
 ieve 66% of numerical ESG targets and 80% of non-numerical ESG targets in 
 CEO compensation contracts. Second\, we document that ESG targets in CEO c
 ompensation plans have meaningful incentive effects such that ESG target a
 chievement is positively associated with CEO cash compensation. Third\, we
  find that socially-responsible investors are more likely to invest in fir
 ms that meet or beat their ESG targets\; however\, a higher likelihood of 
 meeting ESG targets is actually associated with worse ESG outcomes (captur
 ed by OSHA incidents and air emissions). These results suggest that\, inst
 ead of using challenging ESG targets to motivate high ESG performance\, fi
 rms may use ESG target achievement to attract ESG-focused investors. Hence
 \, ESG-focused investors need to view ex post ESG target achievement with 
 caution.\n
DTSTART:20250428T143000Z
DTEND:20250428T160000Z
LOCATION:Room 245\, Bronfman Building\, CA\, QC\, Montreal\, H3A 1G5\, 1001
  rue Sherbrooke Ouest
SUMMARY:Accounting Academic Area Workshop Series: Clara Chen
URL:/desautels/channels/event/accounting-academic-area
 -workshop-series-clara-chen-365004
END:VEVENT
END:VCALENDAR