NCENTIVE EFFECT OF PAY GAP IN TOP MANAGEMENT TEAM UNDER DIFFERENT PROMOTION OPPORTUNITIES

Abstract

Abstract. This paper makes a research on the effect of pay gap in top management team on company performance under different promotion opportunities of managers by using panel data of Chinese A share listed firms during 2015-2019. The results show that when managers have less opportunities to be promoted, the pay gap in top management team is lager. But lager pay gap will not always improve performance.