Facing with the ever increasing change of the business environment derived from the more serious competition, more dynamic customer needs, more rapid technology innovation, more various business models, more significant improvements of the globalization trend and so on, firms have recognized that the persistent competitive edge more and more depends on whether or not they have the dedicated, experienced and capable CEOs. In global practice, more and more firms have tried, are trying or will try to change their CEOs to get higher firm performance or just to get out of recession. Especially it is true in China. For instance, about 15% of the Chinese listed companies have changed their CEOs since the year of 2010, and in some specialized industries and regions of China, this ratio even exceeds 25%. However, in theory, the literature in the field of corporate governance has only discussed how to arrange managerial discretion and executive compensation reasonably under the normal circumstances, while ignoring the conditions of CEO change. Therefore, each stakeholder in the post-CEO change period has no clear theoretical guidances on how to reallocate managerial discretion and reset executive compensation for the fresh CEOs. Such a theoretical research gap has leaded to a large number of failures in the issue of CEO change. In order to make up this gap, this book tries to investigate the relationship between managerial discretion and executive compensation under the conditions of CEO change, which not only can practically guide the corporate governance re-balancing and improve the success possibility of CEO change, but can theoretically enrich the contributions in managerial discretion approach and executive compensation theory. Based on the comparative study perspective, the book brings managerial discretion into the investigation, once again, on that how managerial discretion manipulates each dimension of executive compensation, respectively executive compensation level, CEO pay-performance sensitivity, executive compensation gap and executive-employee compensation gap.
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