The Related Research On The Executives Of Listed Companies Incentives And Corporate Performance

The separation of ownership and management rights is a obvious characteristic of modern enterprises, which brings about the interest conflict between owner and operator, increases corporate agency costs and operational risks, in order for a coordinated interest of the owner and operator. It's needed for corporate managers to conduct a comprehensive and reasonable incentives. The current research in china pays much attention to material incentive but less to non-material incentive,traditional indicators of financial or non-financial indicators evaluation are genarelly used to evaluate mangager's behavior or performance. These resulted in China's listed company executives lack of incentives or inappropriate incentives for executives of the operating results of the evaluation of the lack of comprehensive, objective and fair.This article is for the above, on the theoretical analysis basis, is tied in our executives of the current situation incentives, the incentives'model has been built out. The model has strengthened the functions of the Remuneration Committee of the role of the business combination of internal and external, to develop a high - Possession of a comprehensive incentive program material incentives and non-material incentives, and then through the consolidated financial indicators and non-financial indicators of the performance evaluation system for business executives to evaluate the results, thus improving the revised incentive program; the end through 2004-2006 Screened in 1718 listed companies conducted by the empirical test results show that the annual salary of the executives, ownership and control of the company's revenue and operating performance are significantly positive correlation, and simple mathematical analysis of the mechanism of reasoning is also a executives of the combination of incentives and corporate performance correlation exists, so that the incentive to build the model has been verified.