CEO pay in China tied to performance, ownership, and governance practices.
The study looked at how CEO pay in Chinese companies is linked to company performance and ownership structure. They used data from over 1,300 Chinese companies and found that CEO pay is influenced by company performance, with higher pay linked to better performance. Companies with different types of ultimate shareholders have different approaches to CEO pay. Companies with more independent directors and larger boards tend to pay their CEOs more. The study suggests that improvements in corporate governance in China could benefit from these findings.