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.