Compensation packages, shareholder focus, and CEO preferences contribute to long-term financial and non-financial value creation. This laboratory experiment documents the effect of CEO compensation models on firm outcomes in the context of shareholder views and CEO characteristics. Investment in R&D and clean production is highest when these three value drivers all focus on the long term or on clean production.
This study measures compliance with the principles and best practice provisions of the Dutch Corporate Governance Code in the fiscal year 2015. At 97 percent, overall compliance was high.