Analysis On The Impact Of The Corporate Governance To The Executive Pay And The Sensitivity Of The Enterprise Performance

In the modern enterprise system, the senior management is the leading force of the enterprise's survival and development,their pay system is a important variable in the impact of the company's efficiency. Corporate governance as a mechanism to protect to run a company reasonably,it should manage and supervise effectively in pay system of the management.So,how to motivate executives to make an effort in improving enterprise performance,and then to maintain the the core competitiveness of enterprises is a important content of corporate governance,and at the same time it is also the key of the scientific management.The paper makes a visual orientation in the relationship between the senior management of the listed company and the enterprise performance under the different corporate governance structure. It uses descriptive statistics and hypothesis testing in research methodology,and bases on annual financial data of 2006 and2007 of the listed company of the inner Monglian .It also uses the multiple linear regression model to make the modeling, analysis and evaluation of the issues related of the executive pay and corporate governance,and then to corporate governance structure is how to affect the relevance between the executive pay and corporate performance. We can make following conclusions by empirical: 1.when the the actual holding people is the state-owned holding,it will weaken the link between pay and performance; the proportion of the shares held by the executive and corporate performance in the case of the state-owned holding company is a positive correlation,but in the case of the non-state-owned holding company is a negative correlation.2.when the chairman of the board is also as the general manager,the executive pay levels and the proportion of the shares held by the executive are all positive correlationrelate to the corporate performance.3. The pay levels for independent directors will strengthen the executive pay and corporate performance and the positive correlation between the proportion of the shares held by the executive and corporate performance.