Analysis of the Recent Research Trends on Executive Compensation: Comparison between South Korea and China

[Purpose] The purpose of this study is to analyze the similarities and differences in the role of executive compensation in business practice of Korea and China, in order to draw the foundation for evidence－based policy implications and identify a new area for future research. [Methodology] From 2000 to 2022, an analysis of literature published in the top six (five) accounting journals in South Korea (China) was conducted, and compare the major findings of them in various perspectives. [Findings] The research on executive compensation started earlier in South Korea than in China. The focus of the research on executive compensation differs between the two countries; the determinants of executive compensation vary between the two countries, and the proxies for firm performance are mostly the same in the two countries. However, most of the studies in the two countries document that executive compensation has a positive impact on firm performance. [Implications] The findings of this study imply that despite the variability in social structures and modes of economic development between South Korea and China, a universal recognition of the function of executive compensation systems within corporate settings emerges. This commonality underscores a shared perspective on the significance of executive remuneration in aligning the interests of management with those of the shareholders.