The Contributing Factors Of Top Management Compensation: Evidence From High-tech Listed Companies

The 21st century is the knowledge economy times. With the coming of this century,people pay more and more attention on the high-tech industry because of its highdevelopment. High-tech enterprises are the microcosmic base for the high-tech industry.Their top managements are the main body and the center and the precious human resourcesof the enterprises. How to incentive them to work hard is a tough problem. To some extent,the compensation level is the main imputes because it also embodies the value of the topmanagements. So it very important to analysis characters of the top managements'compensation. This paper is aim to discuss the contributing factors of the top managements'compensation.This paper selects the information technology companies, the electronic apparatuscompanies and the biologic manufacture companies as the representation of high-techpublic companies in the main market; then, with the linear regression model of each factorand the total factors, the paper tests the contributing factors of the top managements'compensation. The high-tech companies have their own characters, so the paper considerswhether there is institute investors and the intangible assets ratio besides the nomal potentialfactors, and we also test the factors from different dimensionalities. It gets the followingresults: the level of top managements' compensation is relevant to the firm's size, where itlocals, the liquid share ratio and whether there are institutes investors as the share holders;moreover, the company's governance, the top managements' characters and the company'sgrowth also have a little relevance to the compensation. At last, the paper explains theseconclusions and provides some suggestions.