Study On The Incentive Of Top Management Compensation Of Listed Company

Both scholars and practitioners all aired their opinions about effectiveness of the top management incentive in China. This paper analyses major form of top management incentive in listed companies, and shows the present situation of it by statistics. In order to investigate the effectiveness of top management incentive mechanism, this paper investigates the factors of top management incentive mechanism.Based on data from annual report of companies listed in Shenzhen or Shanghai between 2001 to 2004, this paper investigate the effectiveness of internal corporate governance system, enterprise, industry etc. in forming managerial compensation .In the research on top management compensation, this paper use EPS, enterprise size, size of board etc. to describe the factors on short time compensation.The model result shows that the board size is not related to top management compensation, which casts doubt on the effectiveness of the board mechanism. And there is positive relationship between top management compensation and stock concentration. The enterprise size influenced the top management compensation. There is great difference in different industries.