A Empirical Research About The Listed Company Executive Compensation And Corporate Performance

Take an effective incentive and restraint method to managements become an important problem in this era when the talent is the enterprises'core.This paper defined the range of"listed company","salary", and the"top- management"based on four theories. The theories are principal-agent theory, human resources theory, incentive compatibility theory and the psychological contract theory. Reference the analysis of Present condition about executive incentive mechanism in domestic and abroad. Then take the listed companies in Henan Province from the year 2007 to 2009 in Shenzhen and Shanghai shock exchange as a sample, carry on the description statistical analysis and regression analysis in order to find some problems in executive compensation incentive. The result is: Executive Pay Level and Enterprise Performance is positively correlated, Executives shareholding and enterprise performance have no significant correlation, Executive pay gap and enterprise performance have no significant correlation.To solve the problem in executive compensation incentive in Henan province, the paper suggested that consummating the salary system to eliminating the "zero pay"; promoting long-term incentive to improve low shareholding phenomenon; strengthen internal and external supervision to increase the transparency of executives'income; and adjust the structure of salary. Take 3 years data to analysis the relationship between executive compensation and corporate performance in listed companies of Henan province; propose the countermeasures and suggestions to the listed company in Henan province about the issue of executive salary incentive mechanism.