Izvorni znanstveni članak
https://doi.org/10.32728/er-ei.38.4.7
THE ADOPTION OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)-LINKED EXECUTIVE REMUNERATION AND THE ROLE OF GENDER DIVERSITY: THE CROATIAN EXPERIENCE
Tea Golja
; Juraj Dobrila University of Pula, Zagrebačka 30, 52100 Pula
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* Dopisni autor.
Sažetak
This paper investigates how Environmental, Social, and Governance (ESG) principles are integrated into executive remuneration systems and examines whether the inclusion of ESG-related performance criteria is associated with the gender composition of management boards in large Croatian listed companies. The purpose of the study is to enhance understanding of how sustainability goals and gender diversity are reflected in executive compensation practices within a post-transition EU economy. The research applies a mixed-method design combining (1) descriptive
trend analysis of board gender composition for the 2020–2024 period and (2) directed qualitative content analysis of remuneration policies to identify the presence and type of ESG indicators. The paper is structured into five sections: introduction, literature review, methodology, results with discussion, and conclusion with implications. The findings show a modest increase in female board representation, although men remain dominant throughout the period. ESG-related goals were included in only 54% of company-year observations, with social and governance indicators prevailing, while environmental metrics were almost absent. The analysis identifies a moderate
negative correlation between female representation and the inclusion of ESG-related criteria in remuneration, suggesting that gender diversity does not serve as a driver of sustainability-linked pay in this context. The results indicate that Croatian companies have only partially aligned their remuneration practices with EU sustainability expectations and often apply ESG criteria in a broad, non-measurable form. The study’s findings can support companies in improving the specificity and measurability of ESG indicators in variable remuneration, assist supervisory boards in strengthening
oversight of sustainability-linked pay, and inform policymakers as they refine national ESG reporting and remuneration frameworks.
Ključne riječi
ESG; executive remuneration; gender diversity; corporate governance; Croatia
Hrčak ID:
345995
URI
Datum izdavanja:
18.3.2026.
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