Executive Compensation Of Company Listed And Managerial Power

Executive compensation is always the focus of scholars media and especially investors.The 2006 global investors survey which is conducted by Institutional Shareholderer Services showed that executive compensation is seen as a main aspect of three corporation government aspects in Canada UK United States and Europe.For shareholders what about the level the executive compensation of Chinese companies listed?Did they waste the shareholders money?This is the matter many investors mainly care about.At the same times executive compensation is the main subject of research for scholars.Although many scholars bring forward various theories to explain executive compensation,such as agent theory incentive theory and human capital theory etc.Other scholars researched the cause which inflence exective compensation and found many causes,such as human stitistics variable company scale and shareholders construct etc.Their theories can not primely explain the above compensation practice(the inharmony between executive compensation and company achievenent). This paper think that this is because they take a static aspect to research and did not detailly investigate the process of making the executive compensation by directors of board or compensation committee. Lucian Arye Bebchuk, Jesse M Fried and David I Walker firstly research this subject through the process of making executive compensation.They investigated that which cause directors of board or compensation committee would take in account ang which can limit them to independly to make decision.They aso bring forward the conception of Manngerial Power and think that executive have the power to inflence their compensation.Therefore executive can use resource and power which they control to inflence the process of making compensation decision by directors of board or compensation committee.The innovation about this paper is to research executive compensation through not simply the cause of it but as a process to make the executive compensation decision.This paper use the data from SHANGHAI and SHENZHEN STOCK EXCHANGE to test theory Lucian Arye Bebchuk, Jesse M Friedå'ŒDavid I Walker bring forward and provide some advices to decrese the Managerial Power.This paper divides 6 chapters. The first chapter is introduction, proposing this paper study background and significance.The second chapter is the related theories, mainly reviewing the compensation conception and theories.The third chapter is the related literatures reviewing and the conclusion and evaluation.The fourth chapter intruduce the conception of managerial power and review the related research about it.These research did not provide data to support their arguments.The fifth chapter is empirical research.It include data source variable definition model design. The sixth chapter is about research conclusion policy advice and deficiency of this paper.