The path-dependence and the SOE's executive compensation incentive in China

With China's continually in-depth economic reform, the reform of state-owned enterprises (SOEs) advances gradually, the role of the enterpriser has changed greatly. But in contrast with the western countries the recompense of Chinese SOE's executives is too low, by which the enthusiasm and creativity of the enterprises could not be released adequately. This work mainly studied the negative effect of the path-dependence on the SOE's executive compensation system in China, and indicated the necessity of the executive incentive innovation.