How much influence does the Chinese state have over CEOs and their compensation?
All that we know about the CEO labour market in China comes from studies of public listed companies and State-owned enterprises (SOEs). This paper is the first to examine the operation of the CEO labour market across all industrial sectors of the Chinese economy. We find that the influence of the St...
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| Format: | Book Section |
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Emerald
2014
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| Online Access: | https://eprints.nottingham.ac.uk/29852/ |
| _version_ | 1848793865366011904 |
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| author | Bryson, Alex Forth, John Zhou, Minghai |
| author2 | Ortega, Jaime |
| author_facet | Ortega, Jaime Bryson, Alex Forth, John Zhou, Minghai |
| author_sort | Bryson, Alex |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | All that we know about the CEO labour market in China comes from studies of public listed companies and State-owned enterprises (SOEs). This paper is the first 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. |
| first_indexed | 2025-11-14T19:07:05Z |
| format | Book Section |
| id | nottingham-29852 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:07:05Z |
| publishDate | 2014 |
| publisher | Emerald |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-298522020-05-04T16:57:12Z https://eprints.nottingham.ac.uk/29852/ How much influence does the Chinese state have over CEOs and their compensation? Bryson, Alex Forth, John Zhou, Minghai All that we know about the CEO labour market in China comes from studies of public listed companies and State-owned enterprises (SOEs). This paper is the first 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. Emerald Ortega, Jaime 2014-11-21 Book Section PeerReviewed Bryson, Alex, Forth, John and Zhou, Minghai (2014) How much influence does the Chinese state have over CEOs and their compensation? In: International perspectives on participation. Advances in the economic analysis of participatory & labor-managed firms (15). Emerald, Bingley, pp. 1-23. ISBN 9781784411695 Executive compensation Job autonomy CEOs China The state http://www.emeraldinsight.com/doi/full/10.1108/S0885-333920140000015001 doi:10.1108/S0885-333920140000015001 doi:10.1108/S0885-333920140000015001 |
| spellingShingle | Executive compensation Job autonomy CEOs China The state Bryson, Alex Forth, John Zhou, Minghai How much influence does the Chinese state have over CEOs and their compensation? |
| title | How much influence does the Chinese state have over CEOs and their compensation? |
| title_full | How much influence does the Chinese state have over CEOs and their compensation? |
| title_fullStr | How much influence does the Chinese state have over CEOs and their compensation? |
| title_full_unstemmed | How much influence does the Chinese state have over CEOs and their compensation? |
| title_short | How much influence does the Chinese state have over CEOs and their compensation? |
| title_sort | how much influence does the chinese state have over ceos and their compensation? |
| topic | Executive compensation Job autonomy CEOs China The state |
| url | https://eprints.nottingham.ac.uk/29852/ https://eprints.nottingham.ac.uk/29852/ https://eprints.nottingham.ac.uk/29852/ |