Does CEO Gender and Independent Commissioner Moderate Executive Remuneration on Sustainability Disclosure? Evidence from Indonesia

This study examines whether CEO gender and independent commissioner moderate the effect of executive remuneration on sustainability disclosure among Indonesia Stock Exchange (IDX) listed firms. Using purposive sampling, we compile 908 firm-year observations from 2018 to 2023 and estimate ordinary least squares regressions with industry and year fixed effects in Stata 17. The results show that executive remuneration is positively and significantly associated with sustainability disclosure. Moreover, the positive effect is stronger in firms led by female CEOs and in firms with more independent commissioners, indicating that leadership and governance characteristics enhance the alignment between pay design and sustainability objectives. These findings suggest that firms can improve sustainability outcomes by structuring compensation to incentivize sustainability and by strengthening board oversight to ensure the effectiveness and credibility of such incentives. The study contributes to the executive pay and sustainability literature by providing evidence from an emerging market that CEO gender and independent commissioners amplify the remuneration–sustainability link, helping to address prior mixed findings on the effectiveness of executive remuneration.