| For a listed company, the top executives play a very important role in its development. Establishing an effective system of encouragement to attract and motivate top management to work positively rather than negatively is a hot topic for many scholars in circles of economics and management all along. Study of top management compensation is an important branch in this field. Compare with abroad research, further more research is needed in our country. Some characteristic factors are not considered simultaneously.On the basis of summarizing relevant theoretical research, this paper takes the listed companies of Shandong province as the research sample and data is collected from annual report of these companies. Using SPSS and through descriptive statistic and multiple linear regression. This paper analyzes the influence of top executive compensation from three aspects: the characteristic of company, corporate governance and the characteristic of top executive compensation. Our regression findings suggest that both firm performance and firm scale are significantly positively related to the top executive's compensation. While the top executive's compensation is not relevant with ownership concentration intensity,board scale, independent director proportion, independent director compensation, supervisory board scale, chairman of board doubles as manager, the age and the shareholding ratio of top executive. Several suggestions were given base on the former analysis in the end of this paper: adapt a multi-faceted compensation structure and pay more attention to long-term compensation; make compensation closely linked to firm's performance and introduce EVA as evaluation index; increase the scale of the company properly and establish a top executive compensation system which adapts to the scale; improve the operational efficiency of the board and enhance the independence of independent board; improve the supervision strength of supervisory board; improve transparency of the disclosure of compensation. |
