An Empirical Research On The Relationship Between Top Executive Compensation And Corporate Performance Of Private Listed Companies

After 30 years of development, private economy has become an important force in advancing China's national economy. With the development of China's securities market in recent years, private listed companies have become a microcosm of the rapid development of China's private economy. In this process, top executives play a key role in the development of enterprises as the most important business and most unique talents, especially for private listed companies. The executive of the initiative depends largely on the effectiveness of incentive. At the same time, the largest shareholders of China's private listed companies have the higher equity rate, and most of them are in the position of controlling shareholders. Large shareholders often use control to affect the private of the corporate governance of listed companies, thus affecting the incentive effects of executive compensation mechanism. Therefore, while private listed companies establish an effective incentive mechanism, further play the active role of large shareholders in executive compensation mechanism for minimizing the negative effects. This effect can be incentive, and fully mobilize the enthusiasm of top executives to make a source of power in reform and development of China's private companies, further improve the corporate governance of private listed companies, enhancing the competitiveness of them. It is very great practical and theoretical significance.This article is based on the perspective of major shareholders. The normal research and empirical research methods combined, In summing up domestic and foreign executive pay and corporate Performance Study based on the private listed companies in our country to the characteristics of Shareholders Controlling pair of corporate governance impact of the use of the data of private listed companies in China during 2006-2008 to analysis the shareholder incentive mechanism on executive compensation effect. The empirical results show that the company's performance and a positive correlation between executive compensation. Further research showed that the greater the proportion of internal top executives is, the smaller executive compensation have a impact on corporate performance. In addition, the paper also found that the greater proportion of large shareholders, corporate performance associated with higher executive compensation.According to empirical research findings in-depth analysis of China's private listed companies control the majority shareholder incentive effects of executive pay have some influence. Therefore, this article proposed to speed up the establishment of market-oriented employment mechanism to improve the hiring executive salary structure and to strengthen and improve the disclosure of remuneration management and executive performance appraisal system, so on, so that private top executives of listed companies'compensation incentive mechanism play more important role.