An Empirical Study On The Relationship Between CEO Pay And Performance Of The Enterprises Runs By Civilian On Stock System

In the information and economy age, the competition between enterprises is the talent competition in the final analysis. And as the price sign of manpower resources, pay plays rather an important guiding role in influencing the flow of talent. The aim of this paper is to help medicine circulation enterprises run by civilian on stock system overcome the difficulty in the efficient attraction and stimulation of the talented persons, thus raising the competitive power of the enterprise to be in an unassailable position in the competitions after the foreign capital's entering the circulation field.The paper first expounds the theoretical foundation of the research into pay, points out the influence of the running mechanism of the main modern pay system on the medicine circulation enterprises run by civilian on stock system, and then utilizing the method of positive research, carries out the research into CEO pay in the medicine circulation enterprises run by civilian on stock system and the current status of the enterprises achievement, finding that the enterprises run by civilian on stock system have declined gradually in their performance during the current stage, CEO pay is a little low and the main factors in affecting CEO pay are the company's scale, the company's achievement, the record of formal schooling of CEO, the company's location, and etc.Then, the paper makes an empirical study into the relationship between the firm performance and CEO pay on the whole and in groups. In the research as a whole, no stimulation and restraint mechanism in the close hook between CEO pay and the firm performance have been found. Meanwhile, in terms of the visible income of CEO, the real effect of the medicine circulation enterprise run by civilian on stock system on the stimulation and the restraint mechanism is very poor. This indicates that no efficient stimulation and restraint mechanism has been set up within the enterprises run by civilian on stock system in our country. In the research in groups, it has been found that the stimulation and restraint mechanism of CEO is not clearly known, no matter whether the medicine circulation enterprises run by civilian on stock system are large companies or small companies. There is no evident difference between the stimulation and restraint mechanism of the large companies and that of the small companies. The author thinks the reasons lie in the relatively more concentration of stock right of the medicine circulation enterprises run by civilian in our country and the similarity in the structure of the stock right of them. In the enterprises chairman of the board and CEO separate (Great Britainand USA structure) the stimulation and restraint mechanism of CEO is better than that in the enterprises the chairman of the board and CEO (Japan and Germany structure).Finally, on the bases of the above empirical study, the paper conducts an exploration into the pay model design of the medicine circulation enterprises run by civilian in our country through drawing experience of the pay model design of CEO from the developed countries abroad and consulting the actual conditions of the enterprises relevant to the case.