Familism, Favoritism Or Equality Of Opportunity-Compensation Mechanism Of Zhejiang Family Firms: An Empirical Study

Compensation mechanism of family firms in Mainland is almost unknown to outsider world. With firm survey we collected October 2003 to January 2004, this paper try to give description of compensation of middle and senior managers in 203 family firms in Province Zhejiang. As to the compensation we include salaries, bonus, shareholding, assignment of cars and house and other welfares. We find three aspects of compensation design, that is familism, favoritism and equality of opportunity are present to different parts of compensation but holds a relatively balance as a whole under the function of "the spirit of sacrifice" and the mechanism of equalization.