Abstract
This paper mainly sorts out and summarizes literatures on executive compensation gap and enterprise performance, and puts forward the direction of further exploration. Firstly, this paper sorts out relevant literature from three perspectives: the relationship between executive compensation and corporate performance, internal compensation gap and corporate performance, and external compensation gap and corporate performance. Secondly, this paper reviews the research on executive compensation gap and enterprise performance. Finally, this paper proposes the future research direction of executive compensation gap and enterprise performance.
Highlights
Upper Echelon theory argues that with the fierce enterprise competition in the whole world, executive members’ working attitude and level largely determines the life of the enterprise
This paper sorts out relevant literature from three perspectives: the relationship between executive compensation and corporate performance, internal compensation gap and corporate performance, and external compensation gap and corporate performance
This paper reviews the research on executive compensation gap and enterprise performance
Summary
Upper Echelon theory argues that with the fierce enterprise competition in the whole world, executive members’ working attitude and level largely determines the life of the enterprise. In 2008, the event of “Sky-high executive compensation” of PING AN INSURANCE (GROUP) COMPANY triggers the social public’s doubts on worse executive pay, even it triggers government to make regulations to limit excessive executive compensation of listed corporates. The core of public questioning lies in whether the executive compensation matches the company performance. This paper starts from the internal and external compensation gap, summarizes the relationship. There are two contributions in this paper: First, this paper mainly sorts out and summarizes literatures on executive compensation gap and enterprise performance, and puts forward the direction of further exploration, which make the topic more clear and are useful for the future study. This paper puts forward the original opinion from the perspective of research angle and research objects, and puts forward the suggestions for the actual mechanical process
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