Analysis Of Factor On Executive Compensation In The Listed Bank Of China

Since the establishment of China's securities market, the CEO pay issue has been plaguing the decision-making and academia. In various industries, the banking industry's average salary has always been at the forefront. Especially after the financial crisis, the executive pay salary, listed banks in particular, became a highly controversial issue, causing of great concern. Under the above background, based on the theory and research related to domestic and foreign, we choose the Listed bank, through empirical analysis, reveal the factor of bank's executive compensation. In order to better understand the pay status of bank executives and build the foundation for further study, and to provide a reasonable basis for decision making to develop the pay incentive system.This paper reviews the theory and literature related to domestic and foreign, combines with China's relevant background and the characteristics of listed bank, classes the various factors on executive compensation. Selected data of 14 listed banks in 2007 and 2008 data, analyzed by multiple linear regression and factor analysis methods, it comes to the conclude:executive compensation of listed bank are associated with the listing period; the largest stockholder, the proportion of the largest shareholders, executives shareholdings and negatively related to non-performing loan ratio; other factors correlation are not significant.