Corporate Social Responsibility and The Compensation Structure of The Board of Directors in Stock Companies

Abstract

The aim of this research was to evaluate the corporate social responsibility (CSR) and its relation with the structure of executive compensation in companies listed on the Tehran Stock Exchange. The statistical population consisted of all companies listed on the Tehran Stock Exchange during the five years leading up to 2020. The sample size of the study was 129 companies that had prepared their financial statements until the end of December for each year from 2016 to 2020. The required information for the research was collected through relevant databases of the Tehran Stock Exchange. The research data were analyzed using a regression model for each hypothesis. The results of the study showed that the disclosure of CSR performance categories has a significant relationship with the structure of executive compensation. Moreover, the company's CSR plays a role in predicting the ratio of the structure of executive compensation based on stock value, and the company's CSR is also a mediating and interactive factor in the relation between the structure of executive compensation and company value. Therefore, CSR has a role in the structure of executive compensation.