The comparative analysis of executive compensation between Japanese and Chinese firms

摘要

The high payments of executives became the target of public criticism when facing economic downturn recently. The implementation of salary limit order was one of the interim administrative interventions from government. In Japanese companies, the level of executive payment is not very large and the salary gap between executives and average employees is a little lower internationally, but the working enthusiasm of executives in Japanese companies is not lower than in other countries. This article first explores the economic, social and cultural factors leading to low executives payment system in Japanese companies, and then makes comparative analysis from the institutional, social and cultural perspectives in order to discuss the possibilities of such a compensation system applied in China. In the end, some suggestions are put forward for strengthening the governance of the executives' payment system in China, such as establishing the concept of stakeholder governance, giving equity instead of bonus in order to select the ambitious enterprisers in addition to government intervention to the executive compensation system.