The effect of CEO human capital, corporate characteristic and inter-firm networks on CEO compensation

摘要

Using the listed company''s accounting report of Shanghai, we explore the determinants of CEO compensation. Based on the traditionally studied determinants, CEO human capital characteristic and the characteristic of the firm for example, we investigate the effect of firms'' network on CEO compensation especially, and the relationship between them. We find that the scale of the firm and the number of direct interlocking to be the predominant influences on CEO compensation, while the performance of the firm, CEO human capital exhibit insignificant influences on CEO compensation, so we conclude that there lacks of effective incentive mechanism in Shanghai''s listed companies. The finding of CEO compensation and the interlocking number interact as both cause and effect, offer a useful point of reference to “the interlocking directorates, as one of the most important firms'' network, is only the correspondence of the directors social network that intended built by the directors”. Implications for future research and practice are discussed.