How Much Influence does the Chinese State have Over CEOs and their Compensation?
Alex Bryson (),
John Forth and
Minghai Zhou ()
A chapter in International Perspectives on Participation, 2014, vol. 15, pp 1-23 from Emerald Publishing Ltd
Abstract All that we know about the Chief Executive Officer (CEO) labour market in China comes from the studies of public listed companies and State-owned Enterprises (SOEs). This is the first attempt to examine the operation of the CEO labour market across all industrial sectors of the Chinese economy. We find that the influence of the State extends beyond SOEs into many privately owned firms. Government is often involved in CEO appointments in domestic firms and, when this is the case, the CEO has less job autonomy and is less likely to have pay linked to firm performance. Nevertheless, we find that incentive schemes are commonplace and include contracts linking CEO pay directly to firm performance, annual bonus schemes, the posting of performance bonds, and holding company stock. The elasticity of pay with respect to company performance is one or more in two-fifths of the cases where CEOs have performance contracts, suggesting many face high-powered incentives. We also show that State-owned and domestic privately owned firms are more likely than foreign-owned firms to use incentive contracts.
Keywords: Executive compensation; job autonomy; CEOs; China; the state; G34; J31; J33; M12; M52; O16; P31 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://www.emeraldinsight.com/10.1108/S0885-333920 ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eme:aeapzz:s0885-333920140000015001
Ordering information: This item can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://www.emeraldgr ... ies.htm?id=0885-3339
Access Statistics for this chapter
More chapters in Advances in the Economic Analysis of Participatory & Labor-Managed Firms from Emerald Publishing Ltd
Bibliographic data for series maintained by Charlotte Maiorana ().