Choices On Perks And Monetary Compensations Under Marketization

Studies about perks, an issue within corporate administration, are inadequate in the academia. Most of the studies related to perks have mainly focused on monetary compensation and equity-based incentives. With further understanding about incentive contract, the prevalence of perks is widely noticed by the public.First,this paper attempts to sort out the domestic research on perks, and research on the sensitivity of company financial performance and executive compensation, both from the theoretical and empirical angles.Second, we find when the level of marketization increases, both perks and monetary compensations increase, and the cash compensations may be used more often in a more developed market. Meanwhile, the sensitivity of company financial performance and executive's compensation is increasing with the increasing of marketization, and we find weak correlation between company financial performance and executive's perks, but in some cases, the results are not stable enough.