This study investigates the interplay between CSR and external governance mechanisms, examining their combined effects on TMT pay dispersion. Central to corporate governance scholarship, fairness and justice norms significantly influence pay allocation rules. The study explores two competing perspectives: egalitarianism, which favours low pay dispersion, and equity, which supports high pay dispersion based on performance. CSR engagement, as a fairness heuristic, is posited to influence pay dispersion, with external governance mechanisms such as institutional ownership, media coverage, and industry regulation potentially moderating this relationship. Analysing data from publicly listed firms, the study finds that CSR engagement generally leads to lower TMT pay dispersion. However, institutional investors and industry regulations tend to weaken, while extensive media coverage amplifies this effect. These findings contribute to understanding how CSR and external governance mechanisms shape fairness norms and pay allocation practices within firms.