Early studies fail to find a link between executive compensation and firm performance (Wei, 2000 and Li, 2000). With the introduction of pay-for-performance compensation regulations and improvements in corporate governance, more recent studies have discovered a significant positive relationship between compensation and performance (Du and Qu, 2005 and Fang, 2009). Fang (2009) finds that although the positive relationship between executive compensation and performance exists, it is asymmetric. The magnitude of the growth in compensation when performance improves is significantly higher than the magnitude of the decline in compensation when performance weakens.