When Governments Become Shareholders, Who Really Calls the Shots?
Sep. 28, 2026
In this interview, Roxana Turturea explains how governments can use executive compensation to influence the CEOs of state-owned enterprises (SOE) and steer corporate strategy. She highlights how political institutions and polarization can either strengthen or limit government influence, with important consequences for other shareholders. The conversation also explores why state ownership is making a comeback as governments pursue sustainability and respond to geopolitical challenges. Finally, Turturea discusses what investors should consider when partnering with states and how the benefits of state ownership can be balanced against the risks of political influence.
00:00 Your paper argues that governments use executive compensation to turn CEOs of State-Owned Enterprises (SOEs) into “agents of the state.” Why did you focus on compensation as the key mechanism?
00:57 How does your principal–principal agency perspective change the way we think about SOEs and corporate governance?
01:55 Which political institutions most strongly influence CEO compensation in SOEs, and why?
03:03 Can state goals and share and shareholder value truly coexist in SOEs , or is there always a trade-off?
03:51How do political polarization and political constraints affect the protection of minority shareholders in SOEs?
05:15 Why did you focus on employment and corporate social performance as key state objectives?
06:37 Were there any countries in your sample that particularly surprised you?
07:38 Why do you think state ownership is “back in fashion”?
09:04 SOE CEOs are often paid less overall, yet compensation still acts as an effective bonding tool. How do you explain that paradox?
10:18 What lessons should policymakers and investors take from your findings?
11:24 What future research questions about state ownership and executive behavior are you most excited about?
