Regional Disparities,Compensation Structure,and Management Turnover——Moving to the"Beijing-Shanghai-Guangzhou"Region or Relocating Away
This paper examines the impact of regional disparities on the level and structure of executive compensation,elucidating the motivation of compensation structure in management turnover across regions.The study reveals that the monetary compensation and equity incentives of executives in first-tier cities such as Beijing,Shanghai,and Guangzhou are significantly higher than those in second-and third-tier cities.However,when considering the cost of living,the monetary compensation level in first-tier cities no longer holds an advantage.The higher proportion of equity incentives in the compensa-tion structure is not only a major factor motivating executives from second-and third-tier cities to relocate to first-tier cities,but also mitigates the tenden-cy for executives to leave first-tier cities.Heterogeneity analysis indicates that the promotional effect of equity incentives on management turnover to first-tier cities is more significant among those executives who work in high-tech industries,or belong to a younger generation.This paper extends the research on regional disparities and executive compensation structures,providing a deeper understanding of the causes and economic consequences of management turnover across regions.
Regional DisparitiesCompensation StructureManagement Turnover across RegionsCost of Living
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