The Study Of The Correlation Between Pay And Performance Of Executives Of Chinese Listed Companies

The serious economic crisis had erupted at 2008 all over the world. The economic recession had great effect to the corporate governance. The global economic crisis made the world had a great change. We must answer those questions. How can we to maintain the business strategy and shareholder interests? How can we to keep unbeaten in the competition?More and more people begin to research this topic. The human capital value of company executives had a great effect on corporate governance. It made the company unbeaten in the competition.Now economic developed rapidly, one of the most important things is establishing a rational and efficient executive pay incentive. If we divide corporate governance into two aspects, one is incentive and another is restraint. The establishing pay incentive is the restraint. The good pay incentive can make executives work much better.We chose this research to our topics, used the top 100 Chinese listed companies governance evaluation report which announced by the Chinese Academy of Social Sciences and the annually published data of listed companies. To find that there is positive correlation relationship between pay and EPS, there is not relationship between pay and ROE. The incentive pays play a small role; it should be fixed-income and risk of combining income, so using the annual salary system and the stock options to reform the combination of pay system is a good way to take this problem.