A Study Of Incentive And Performance For Senior-Managers In Listed Pharmacy Companies

Under the circumstances of globalization, the importance of financial management is realized by the management of enterprise. The research subjects of enterprise are concerned with the effective enhancement of enterprises performance and the realization of enterprise goal: the maximization of the value of corporate and the stockholder's equity. The senior manager is the key factor to realize the aim. The benefit of stockholder is inconsistent with the senior management, which can not promote the senior manager to service for the shareholders and to achieve the goal of enterprise. Incentive of Compensation is the compensation between the senior managers and the shareholders. If incentive of compensation is designed and used effectively, it can solve the contradiction and achieve the goal of enterprise.Firstly, the essay expounds the basic theories on the executives'compensation incentive systematically, basing on the empirical researches on the relationship between the executives and corporate performance. Secondly, the essay chooses 77 listed companies in medicine and analyses the data from 2006 to 2008. Thirdly, the essay makes an empirical study on the relationship between the executives and corporate performance and the mutual efforts.In this research, the author adopts the variables of the short and long corporate and analyses the relevance between the executives and corporate performance in terms of pharmaceutical companies'stock incentive and salary incentive. Then the author puts forwards the corporate governance variable and makes a detailed analysis of relevance between the executive pay and the corporate performance. Next, in order to testify the conclusion, the author adopts the model of executive pay to study how corporate performance affects executive pay. Lastly, the author makes suggestions to improve the system of remuneration incentives so as to maximize the value of enterprises.