Same or Different? The CEO Labour Market in China's Public Listed Companies

Publication date: 19 Jun 2013 | Publication type: Conference and seminar output | Theme: Employment & Social policy | NIESR Author(s): Bryson, A; Forth, J | External Author(s): Zhou, M

A priori it is unclear whether empirical findings on the nature of CEO compensation based on Western developed economies should generalise to the compensation of top executives in China's listed companies. Although China is developing a market-oriented economy it remains a Communist regime in which the state continues to own the largest companies. Using linked employer-employee data for all of China’s public listed firms over the period 2001-2010 we find compensation for CEO's exhibits many of the traits familiar in the Western literature, although sometimes in a more muted way, and with some clear exceptions. There appears to be something about executive jobs and how they are managed which transcends national economic, political and cultural differences. The implication is that the Western model is not as unique or indeed dysfunctional as critics suggest. Presentation at Executive Compensation Workshop, Brunel University.

Keyword tags: 
executive compensation; CEO's; corporate governance; tournaments; firm-specific human capital; China

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