The Empirical Study On Top Manager Compensation And Enterprise Performance

Senior managers of the company the more distinct groups, although they are not the company's owners or investors, but their management capacity and performance directly affect the company profitability, it is senior management incentives 90 years since the beginning of the 20th century has become an important company in the theory of one of the problems, the target is to build the actual environment and corporate executives to adapt to the crowd incentives. Executives about the company's incentive problem has plagued the problem of corporate governance institutions, the reason, the most important factor is the problem with unstable, subject to many factors, such as socio-economic and political environment, company policy, etc.Based on the mechanism of listed companies in China the status of executive compensation, and compared with other developed countries companies to identify outstanding problems, which are targeted to determine executive pay and company performance measures, incentive-based theory of executive pay on executive pay and corporate performance relationship hypothesized, and are used to build mathematical models, statistical analysis by the actual data, positive or negative assumptions to arrive at conclusions, and finally taking into account the conclusions of this paper puts forward some suggestions. The sample used in this article are from 2006 to 2008 the annual pay executives of listed companies, shareholding and performance indicator data, applications and empirical research methods combined, refined and abroad researchers extracted the views or conclusions, Considering the ownership of incentive pay and status and problems of senior executives of listed companies in China between incentives and firm performance sensitivity is tested, and inspected the executives of listed companies and corporate performance incentives associated factors sex; Study found that executives of listed companies holding the annual level of total remuneration levels and different, the former is higher and company performance were positively correlated, while the latter is low, and corporate performance no significant correlation. From the side against the background of a long-term incentive effects of managerial ownership is not well in our country is not listed companies revealed. Empirical model also rejected the return of senior executives of listed companies holding a strong incentive effectiveness. Incentive pay for executives to be improved, must focus on long-term incentives and short-term incentive combination. First, the system should protect a company executive pay and performance balance. Further develop, improve and perfect the system of executive compensation and growth mechanisms. Again, the scientific management of executive compensation, establish and improve internal and public oversight mechanisms. Finally, when determining executive compensation with company size, geographical distribution and industry characteristics, can not be designated a unified standard, the need for the above factors, integrated to determine levels of remuneration. This is evidence for the above conclusions, the paper concludes with specific recommendations on the future, the company system, Incentives program is an important reference and guide.