Influential factors of executives' equity-based revenue in Chinese-listed companies

Abstract

In the Chinese context of economic reform and restructuring to establish the modern corporate system, new models of executives' equity-based revenue are tested. Stock option income is currently becoming a critical part in the whole package offering to the executives. In this research, we examine the influential factors of executives' equity-based revenue in 127 Chineselisted companies. It appears that business performance is positively related to executives' equitybased compensation, that there is no significant correlation between executives' equity-based compensation and corporate size, that industry is an influential factor of executives' equity-based compensation, and that there is no significant correlation between executives' equity-based compensation and tenure. Based on these findings, we suggest future improvements to establish a healthier equity incentive system in China.