Analysis Of The Issues On The Compensation Of Public Company Executives In Financial Industry

Since 2007, with the compensation of executives in some of the listed companies, especially some listed companies in financial industry increase substantially, as well as the event'whopping compensation'in some individual listed companies became known, the problems of exorbitant compensation of public company executives in financial industry caused great concern. The financial crisis attacked the entire world by the end of 2007, most of the query and criticism were given to the executives in financial industry of Wall Street, for their exorbitant compensation while their companies were suffering massive losses. Again, the problems of the compensation of executives caused world wide concern and discussion at one time. The compensation of executives has become a hot point both in Management and Company Law. Study the well concerned problem of compensation of public company executives in financial industry will be of great significance for establishing reasonable compensation system and regulating the management of compensation.Financial crisis exposed a lot of problems existed behind the compensation of executives. This paper starts with the data of five years of the compensation of public company executives in financial industry, which are from 2006(the year before the financial crisis) to 2010. Then, Combined with the measures taken by the entire world and the policy taken by China during the period, this paper analyzes the changes of the compensation of listed company executives in financial industry during these five years. Finally, this paper induces the problems behind the compensation of public company executives in financial industry, then try to find out ways of solving these problems.First of all, this paper introduces background of this research, then defines the concept of financial listed companies, and then expounds the relevant theories and next, introduces the study history and situation of compensation of executives both at home and abroad. Next, this paper analyzes the data of the compensation of listed company executives in financial industry from 2006 to 2010. Then this paper analyzes how the characteristics of financial industry influence executive compensation. Then this paper makes a comparison between China and America. Next this paper illustrates the impact of executive pay exorbitant. Rises questions which exist in compensation of public company executives in financial industry after analyzes the data. And then makes further analysis of these problems to make a conclusion of the key issues which need solve most. At the end of this paper, we look for corresponding solutions, and put forward some suggestions.