Multidimensional Performance Evaluation and Executive Compensation Stickiness: Evidence from China

This research investigates how non-profit and non-financial performance affects executive compensation stickiness among Chinese A-share-listed companies in Shanghai and Shenzhen from 2009 to 2024. The findings reveal that both non-profit and non-financial performance are positively associated with compensation stickiness. Mechanistic tests indicate that non-profit performance enhances compensation stickiness by lowering financing costs and improving market expansion capabilities, whereas non-financial performance does so by lowering financing costs and enhancing corporate reputation. Heterogeneity tests demonstrate a stronger positive impact in firms with lower profit pressure, less financial distress, myopic or non-local executives, lower economic policy uncertainty, and weaker speculative culture.