Executive compensation in the Chinese market

Since the initiation of market-orientated reforms in the late 1970s, China's economic landscape has transformed significantly, particularly with the privatisation of state-owned enterprises and the introduction of market mechanisms in the 1990s. Executive compensation has changed significantly due to various economic reforms and regulatory changes. We trace this evolution, review the development history of executive compensation in China, and intensely discuss the executive compensation mechanism of Chinese A-share listed companies. By analysing the executive compensation of Chinese listed companies, this chapter aims to provide significant perspectives and insights into the corporate governance environment and operation strategy under socialism with Chinese characteristics. We focus on the current academic literature on executive compensation in China and comprehensively analyse and summarise the current academic research status from four perspectives: theoretical basis, data source, methodology, and topic trend. Finally, we prospectively analyse the future direction and trend worth exploring.