Research On The Causation Of Executive Compensation

The study on the causation within the administrative liability is of very importance for both academic study and practical application. As a part of the responsibility constitute of the executive compensation, the issue of causation belongs to the law philosophic proposition. And any further study on it will surely contribute much to judging involving executive compensation. It is so pity that seldom scholars have studied it in a systematic way although it is very important. Not less there will be some systematic and manipulable theory to direct the executive compensation. So when it comes to judging cases of the executive compensation, it will happen that the state ignores its compensation liability. Several factors contribute to this phenomenon. For example, the administrative law is a newly integrated one, so some theories on it are not very perfect. There is some defect of traditional theories on causation in understanding the causation and on the theory of knowledge. So we have a long way to go in judging the causation of executive compensation correctly.The theory of responsibility constitute of the state compensation is also suitable for the executive compensation. So the responsibility constitute of the executive compensation is constituted of the following: the element of subject; the element of action; the result of damages and the causation. And the causation means the relation between the torts of the administrative mechanism and its workers and the damages caused by the administrative mechanism and its workers. The causation is a necessary part to the responsibility constitute of the executive compensation. The causation is unique in its constitutive elements, for example, its torts. There is so much difference between the causation of the executive compensation and other tort, such as the criminal law and the civil law.Currently, there are three theories on the causation of executive compensation: direct causation theory, inevitable causation theory and corresponding causation theory. Every theory is reasonable but not perfect. The causation of executive compensation is so complicated that we can not put only one theory into effect on judging the causation thoroughly. So it is very necessary to establish the system of the causation of the executive compensation.By analyzing, we find that in the states of Anglo-American Legal System, the judging of causation is put into effect through two steps. First, people will judge the causation according to the facts which is called "facts causal relationship". Second, people will further judge the legal causation. It is a very scientific way. In this article, after analyzing the causation in philosophy and the traditional theories on judging the causation, I try to establish the system of judging the causation of the executive compensation and perfect it on the base of dichotomy method. So, I advocate that the poly-criterion should be established in judging the causation of executive compensation.