Australian study links pay incentives to sustainability data 'restatements'
This is not the first study to question the legitimacy of tying executive bonuses to sustainability performance.
Giving directors pay incentives to meet sustainability goals makes them more likely to revise previous metrics in order to show year-on-year improvements, a study of top Australian companies has found.
The research, published this week in the Journal Of Management Accounting Research, analysed data published between 2004 and 2020 by 500 firms listed on the Australian Securities Exchange (ASX).
