Research On Relationship Between The Compensation Of Executives And Performance In Small And Medium-sized Listed Company

With the promotion of the market economy, the Small and medium-sized company has already obtained significant development in our country. The compensation drives executives who are the main body of Small and medium-sized listed company to work hard and affect the performance in it, so the paper aim to discuss the relationship of compensation of executives and performance in the Small and medium-sized listed company.In the beginning,the paper tells us the significance of such a study on the Small and medium-sized listed company,and reviews the relevant research in China and abroad. Then the paper explains relevant concepts and theories. In the following, on the basis of these theories the paper gives the hypothesis, variables and model. Through analyzing the data of the small and medium-sized listed company, it gets the results of compensation of executives and performance in the company. Finally it examines the model with the method of linear regression.The results reveal that: The positive correlation exists between the performance and compensation of executives. But when the performance is explained in different ways the relevance is also different. The relevance between performance and the proportion of stock-holding of executives is strong. Also the positive correlation exists between the scale of enterprise and the compensation of executives.