Non-family CEO compensation and firm performance: Evidence from Chinese listed family firms

Abstract

Family firms account for more than half of listed firms in China, and they are confronted with serious challenge of introducing professional CEOs. In this paper, my research focuses on the performance implication of non-family CEO compensation. I study how non-family CEO compensation and their compensation gap with family members impact firm performance in Chinese market. I find that firm performance is positively related to both non-family CEO compensation and their compensation gap with family members, indicating that not only the absolute level, but also the relative level of non-family CEO compensation could impact firm performance.