| With the coming of "knowledge-driven" economy in the new century, many managers have a common knowledge that a core competitiveness of enterprises is how to attract and retain top talent and stimulate their enthusiasm. In order to resolve above problem, it is very crucial to establish a scientific and reasonable compensation incentive mechanism.Establishing an effective system of encouragement to attract and motivate top management to work positively rather than negatively(like agency-failure) 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, some problems still exist in domestic research:most of them are normative research, positive research only take a small part.On the other hand some characteristic factors are not considered simultaneously, including some worthy factors. In addition, the criteria of industry demarcation are not objective. This thesis amends the defects before and furthers the study on influencing factors.Samples chosed are the listed companies which take non-ferrous metal business as the main industry in Shanghai & Shenzhen Stock Exchange. Eviews is used to carry out bivariate and regression analysis. Company characteristics variables(scale) pass the tests, supporting mainstream results of the past empirical research. Different from most scholars'all industries research, we find five variables about stock structure are all expelled by the model, such as the proportion of State-owned shares which doesn't appear negative to the compensation but strong positive. Although the variable of independent director proportion passes the test, it is not accord with our expectation. As the third group of top manager characteristics variables, the proportion of shares and age don't enter the last equation. In other variables, region enters the equation third showing a strong relation, not only matching with assumption but also proving that our classification standard is appropriate. Setting of remuneration committee and the proportion of top manager-owned shares may show certain related relation, but can not be verified by regression finally.According to the result of empirical examination, there are some characteristics in the listed non-ferrous metals company, as follows.Firstly, the level of top manager compensation is relatively high,2008 is higher than 2007. Top manager compensation among companies has wide difference. There exists an obvious regional and whether to set remuneration committee difference. But duality of general manager and chairman or not has the most obvious difference. Top manager pay in state-owned company is much higher than that in non State-owned. The proportion of state-owned shares is high, top manager-owned is low and phenomenon of "zero-holding" is very severe.Secondly, firm size (the natural logarithm of total assets), Stock structure (the proportion of State-owned shares), independent directors compensation, two post integration and region appear significant positive to top manager compensation. There is a weak negative correlation between the proportion of top manager-owned shares and their compensation, a strong negative correlation between construction of remuneration committee and compensation. Corporate risk, the board size, the proportion of independent directors, executives age, years of listing and company performance have not significant impact on top manager compensation.Thirdly, comparing with other factors, performance does not seem to influence the compensation. CEO pay is not linked to performance. The proportion of State-owned shares has a significant impact on compensation, top manager-owned has not. There is no long-term incentive effect, but a serious incentive problem in the listed non-ferrous metals companies.For the above analysis, this paper gives a series of suggestions for the non-ferrous metals industry. Hope to provide reference for the construction of incentive mechanism. |
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