An Empirical Study On Compensation To Top Management And Corporate Performance

Talents' competition is the focus that modern enterprises pay more attention to. As the enterprise key person—top-management, how arises their enthusiasm is the key factor of the enterprise'survival and development. As an important component of the governance structure, the top-management compensation system is significant to the listed companies. In order to realize the present situation, problems and development tendency of the top-management compensation system, the paper research on it and try to find practical methods to analyze and measure it. And it has provided a good perspective for the current enterprise reform.First, this paper based on the theory of financial management, using philosophy, economics, management, statistics, investment and related theoretical knowledge, has constructed the theoretical framework on the top-management compensation of listed companies and has formed a general understanding of the top-management compensation theory. Next, the paper take the 348 listed companies from 2003 years to 2005 years in China's Shenzhen stock exchange as the overall sample, carry on the description statistical analysis to the overall condition of the top-management compensation of listed companies. Finally, on the basis of the theory and description analysis before, after rejecting incomplete data on non-pecuniary compensation remains 222 listed companies in 2005 to do the further regression analysis research. After the statistics, it draws the relationships that the executives of listed companies pay and corporate performance and the degree of sensitivity of the shares, the executives'annual salary and the size of the companies, on-the-job consumption, and shares and other factors. It provides an experience basis for executives of listed companies to formulate pay system.The creation is that, in order to explain why the earning of the top manager is such low and why exists the"zero share"and"zero compensation", the paper makes theoretical discussion and quantitative analysis deeply to the on-the-job compensation of the top management by using the newest data, and the result shows that the top-management compensation is relate to the form value.