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There has been controversies on the sky-high compensation of state-owned enterprise(SOE) executives over the years; and the Ministry of Finance issued a series of governmentimposed pay curbs on their compensation to limit the pay of the state-owned enterprise executives. However, the effect of such regulations are difficult to assess. Based on the literature research, possible effects by the limit pay order are probed into, then the underlying reasons are analyzed, and then the corresponding consequences are discussed. and in the end reasonable and feasible suggestions put forward. Keywords—executive compensation; limit pay order; SOE

Research on reasons and effects of compensation control on executives of state-owned enterprises