Our study examines the relation between the executives’ compensation and CSR expenditure in Indian firms. We employ OLS and Tobit regression to analyze the relation between executives’ compensation and CSR expenditure in more than 3,900 listed firms, from 2015 to 2023. We find that the variable component of the CEOs’ and CMDs’ compensation has a positive relation with the CSR expenditure made by the firm. We base our results on the argument of CSR improving the reputation of the firms in the market and, thus, motivating the managers to spend more in the activities related to CSR.
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