Research On Information Disclosure Of Executive Compensation In Chinese Listed Companies

The separation between ownership and control gives shareholders and social investors a disadvantageous position. With information asymmetry, they are unable to effectively exercise supervision.On the contrary,as a "Rational Economic Man",executives have the motivation to use the advantages of information resources to effect the compensation contract and entrench. Therefore, how to overcome the defects of information disclosure, weaken the negative effects of information asymmetry will be the important issues for the efficient market of manager and corporate governance.This article is divided into four parts. According to the clue that managerial power interact with the flaws of compensation disclosure,I explore the root of the issue of executive compensation and put forward proposals which are conforming to Chinese actual situation of information disclosure.First, by citing the status of executive compensation despite the rising under the background of the financial crisis in Chinese market and US market,combining empirical analysis of performance-compensation sensitivity at home and abroad,I find the common status existing in the executive compensation:executive compensation decoupling from performance of company.On this basis, I analyse the problem of executive compensation from two dimensions which are company's internal governance and market supervision. Further,I clear up the problems between information disclosure and executive compensation.Second,I analyse the significance of information disclosure of executive compensation by learning from efficient markets hypothesis and corporate governance theory.True,sufficient and timely information disclosure can not only regulate the professional manager market and the allocation of human resources, but also can solve the problem of agency and prevent renting.Third,I research on the present situation and development process of Chinese information disclosure of executive compensation,and learn developed experience from the United states,which provides reference for our information disclosure system of executive compensation.Forth,I make perfect the idea of information disclosure system of executive compensation,by improving the disclosure mode,broadening the scope of disclosure,increasing the transparency of the Remuneration Committee and improving the defects of the responsibility for disclosure,and so on,especially disclosing information of option, pension scheme and position-relatedconsumption to the public.Establish and perfect the information disclosure system of executive compensation.