Name
Customer Metrics in CEO Compensation and Customer Experience
Date & Time
Monday, July 6, 2026, 5:05 PM - 5:30 PM
Description
This paper examines whether using customer-related performance metrics in CEO compensation plans improves customer experience. Based on data from US listed firms, we find that firms adopting customer metrics exhibit significantly stronger customer experience. These results are robust to entropy balancing and a series of alternative variable constructions and measures. We further find that the association is more pronounced when customer metrics represent a larger share of CEO incentives or when firms continue using such metrics over time, thereby strengthening the link between the use of customer metrics and the subsequent improvement in customer experience. However, we do not find an increase in profits. Overall, the findings suggest that customer metrics in CEO compensation enhance customer experience, but do not yield immediate financial performance improvements.
Speakers
Keywords
CEO compensation, Customer metrics, Customer experience
Theme
CORPORATE GOVERNANCE
Author 1
Xiaofei Duan
Author 2
Yunyan Zhang
Author 3
Wei Li