We document evidence that the CEOs who lead the firms that face higher climate change risk (CCR) receive higher equity-based compensation. Our finding is consistent with the compensating-wedge-differential theory and survives numerous robustness and endogeneity tests. The result is more...

We find a positive association between the general ability of chief executive officers (CEOs) and the magnitude of carbon emissions in carbon-emitting firms (CEFs). Furthermore, we find that generalist CEOs can influence carbon emission decisions reluctantly when CEFs’ transparency on...