Herremans, IreneMahmoudian, Fereshteh2017-02-022017-02-0220172017Mahmoudian, F. (2017). The Integration of the Internal Strategic and Operational Controls to Maintain Sustainability Performance: The Linkage of the Sustainability Reporting and Sustainability Performance to Pay Ratio, CEO Power, and the Board Diversity (Doctoral thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca. doi:10.11575/PRISM/28220http://hdl.handle.net/11023/3631This dissertation consists of three studies on sustainability performance and the internal strategic and operational components that lead to higher sustainability performance. By applying a systems approach, the first paper demonstrates how the internal strategic and operational components predict sustainability performance and the quality of the sustainability reporting. I find that leading performers (companies with higher sustainability performance) employ systems that are more comprehensive at both the strategic and operational levels. Region of incorporation, business activities, financial variables, and firm size also play a role in achieving sustainability outcomes. Delving into the details of the strategic controls, the second paper investigates the determinants of the pay ratio (between executive managers and non-executive employees) and the influence of the ratio on sustainability performance. I find that the firm’s operational performance and the employees’ skills are positively associated with the pay ratio, but the higher the ratio between executive and non-executive compensation, the lower the sustainability performance. I conclude that a high relative pay ratio provides a tournament incentive for executives to increase the firm’s operational performance. However, the high pay ratio might also lead to non-executive employees’ dissatisfaction stemming from the perceived inequity in pay. In addition, high pay ratios are inconsistent with the values of a sustainable company. Rather than investigating compensation for all executives, the third paper narrows the focus to CEO compensation as a proxy for CEO power. Thus, the third paper examines the determinants of CEO power along with compensation committee members’ diversity in relation to sustainability performance. I find that CEO power is associated with the executives’ demographic structure. After controlling for a firm’s ownership structure and internal factors, including financial performance, I determine the short-term and long-term levels of CEO power. I investigate whether CEO power, along with compensation committee members’ diversity, is associated with firms’ sustainability performance. I find that CEO power (both short term and long term) is significantly associated with sustainability performance. Moreover, I find mostly positive, albeit weak associations between compensation committee members’ diversity and sustainability performance.engUniversity of Calgary graduate students retain copyright ownership and moral rights for their thesis. You may use this material in any way that is permitted by the Copyright Act or through licensing that has been assigned to the document. For uses that are not allowable under copyright legislation or licensing, you are required to seek permission.Education--BusinessSustainability performanceExecutives' CompensationCEO powerCorporate Social ResponsibilityDiversitydoctoral thesis10.11575/PRISM/28220