Abstract:
How to optimize internal compensation distribution and effectively balance efficiency with equity is a crucial issue concerning high-quality corporate development. This paper explores the impact of government guidance funds on corporate internal income gaps from the perspective of patient capital. The study finds that government guidance funds focus more on policy objectives and long-term corporate value, tend to adopt long-termist corporate governance strategies and compensation structure arrangements, and significantly narrow corporate internal compensation gaps. Such narrowing gap primarily stems from the optimization and adjustment of compensation structures, rather than a decline in overall corporate compensation levels. The mechanisms include: first, redistribution of existing returns by increasing the proportion of cash compensation for ordinary employees, shifting existing profits from management to employees; second, redistribution of incremental value by allocating new profits more to employees through wages, performance bonuses, and other means; third, supervisory governance effect by compressing executive rent-seeking space and reinforcing long-term orientation in corporate business decisions and compensation incentives. Heterogeneity analysis reveals that these effects are more pronounced in monopolistic industries, firms with weaker employee bargaining power, technology-intensive enterprises, and companies with more patient investors. This paper extends research on the economic consequences of government guidance funds and provides references for cultivating patient capital and improving corporate compensation systems.
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