Executive Compensation Incentives and Enterprise Innovation Performance: Research Overview and Prospects

Abstract

In the ever-changing technological environment, innovation performance can ensure the company’s sustainable competitive advantage, and the effect is very obvious. Therefore, how to improve the innovation performance of enterprises is an important issue in building an innovative country in our country. Senior managers assume important management responsibilities at the top of the enterprise, and the performance of the enterprise will be significantly aff ected by their decisions. Among the incentives for executives, salary incentives are the most eff ective and mature method. In recent years, a large number of scholars have studied how corporate innovation performance is affected by executive compensation incentives. This paper sorts out the literature on the impact of monetary salary incentives, equity incentives, salary gaps, and salary stickiness on corporate innovation performance, sorts out the relationship between the two, and looks forward to future research directions.