Research On Senior Executive's Salary Incentive Mechanism Of Listed Company

The selected topic of the paper originates from the Shanghai Stock Exchange Tenth joint research projects "senior executive's incentive mechanism of Chinese listed company ", this paper is the in-depth study on the project.Senior executive's salary incentive mechanism of listed companies is a key issue of the current practice of corporate governance reform. This paper selects of 2003-2005 financial data of 1141 listed companies, carries on statistical description and multivariate regression analysis to senior executive's salary. It is found that there is an "range effect" between the net rate of return on capital and senior executive salary, the size of listed companies and location of listed companies have significant relevance relation with senior executive salary, executive holding has not relevance relation with senior executive salary.Based on the analysis of the relevant theoretical and empirical research, this paper proposes a "base salary +risk reward+ stock option" mode of remuneration incentives mechanism, probes into technique of the basic salary, stock option and the risk remuneration. Then it puts forward the corresponding policy recommendations.