This study investigates the relationship between CEO compensation, green innovation, and environmental performance. By analyzing a sample of listed companies on China's stock exchanges from 2012 to 2022, the findings indicate that CEO compensation has a positive impact on environmental performance. Furthermore, green innovation can strengthen the positive impact of CEO compensation on environmental performance. Heterogeneity analysis indicates that the impact of CEO compensation on environmental performance is more significant within the non-state-owned enterprises. Likewise, a comparable circumstance emerges in the central region of China. Therefore, this study provides empirical insights that enrich the limited literature on CEO compensation, green innovation, and environmental performance. In terms of practical contributions, the most direct significance of this study is to investigate how CEO compensation design can effectively enhance corporate environmental performance and facilitate the synergistic development of economy and environment.
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