University of York research on executive pay informs major United Nations report on business and human rights
Posted on Tuesday 20 October 2026
The research by Agnieszka Trzeciakiewicz and her co-authors, Monika Tarsalewska from the University of Exeter and Justin Chircop from Lancaster University, finds that executive pay structures that reward risk-taking are associated with higher levels of workplace misconduct, including violations of labour laws and workplace health and safety regulations.
Citing these findings, a new report from the United Nations Working Group on Business and Human Rights warns that current executive compensation structures can create incentives that undermine workers' rights and calls for companies to link executive pay more closely to human rights performance.
Global reach
Dr Agnieszka Trzeciakiewicz, from the School for Business and Society at the University of York, said: “Executive pay usually focuses on shareholder returns, but our findings show the consequences extend far beyond financial markets. The way senior executives are rewarded influences corporate decisions that directly affect employees, their rights and their working conditions.
“I never imagined when we began this research that it might contribute to a policy debate with such global reach. If the report gains traction among UN Member States, there is real potential to change how executive incentives and their implications for workers are considered around the world.”
The research evaluated 1,916 publicly listed United States companies between the year 2000 and 2018. Researchers matched detailed information on executive compensation with regulatory records of workplace violations.
A one-standard-deviation increase in chief executive risk-taking incentives was associated with a 6.7% increase in workplace violations. It also led to a 5.5% increase in the total value of financial penalties.
Increased pressure
The study identifies two main ways these incentives translate into negative outcomes for staff. Companies reduced spending associated with employee safety, and increased pressure on staff through heavier workloads. Heavier workloads occurred when companies cut staff, forcing remaining employees to absorb extra work, or increased required production per worker.
To test whether executive pay caused these violations, the research analysed a change in United States accounting rules that led companies to reduce stock options. Following this change, companies that cut stock-option incentives experienced a drop in both the frequency and severity of workplace safety violations.
Incentivises behaviour
The United Nations report cites the findings in paragraph 65 of its section on executive remuneration. Drawing on this evidence, the United Nations Working Group notes that executive pay tied to financial performance incentivises behaviour that increases human rights risks.
The report recommends that companies expressly link executive remuneration and incentives to human rights performance indicators. It directs these recommendations at companies, corporate boards, states and financial investors.
The research findings will be presented to the United Nations General Assembly in New York in October, a second presentation and policy discussion will follow in Geneva in November.
