Abstract This article aims to study the relations of top management compensation, company performance and market performance in China using 2001-2011 data. We finds out that salary motivation system related with the performance has been built preliminarily during the development of remuneration reform and most of the central holding companies, while local state-owned companies and private companies implement absolute incentive. Besides, when the company performance surpasses the market performance, it implements the combination of absolute incentive and relative incentive; when the company performance is worse than the market performance, it implements absolute incentive, which reveals that the incentive method of top management compensation has asymmetric effects.
DU Jiang,HUANG Shan. Top Management Compensation Incentive of Chinese Public Companies: Absolute Incentive and Relative Incentive. Economic Survey, 2014, 31(3): 078.
2014, Vol. 31 
