Aempirical Study On The Correlation Between The Compensation Dispersion Of The Top Management Team And Company Performance

The salary incentive system of top management team has been the focus point of academia and practitioners, but there exists less literature on compensation dispersion, especially research of the relationship of compensation dispersion and company performance. Making the compensation dispersion of top management a very important part of payment structure is the monetization description and affirmation of contribution of executives in management, technology, capital and work. Research on compensation dispersion of executives is important to improving current system, increasing the incentive of compensation and enhancing the impact of incentive of compensation and the performance of the company.This article, which based on the background of the system in our country and the annual data of listed companies at home in 2008, research on the question of compensation dispersion of executives in our country's listed company using the method of normative research and empirical study. Firstly, the relationship between compensation dispersion and company performance (the increase or decrease of the payment to the company performance) and the applicability of tournament view and behavioral view is suited to our country's listed company are tested in this article. Based on this point, the factors in the company management which could influence the incentive effects of the compensation dispersion and how to use these factors in the reform of the executive payment system is further studied in order to upgrade the performance of the company. The mainly founds of this article are: (1) There exist the effect of tournament view in the top management team and the significant positive correlation of compensation dispersion and company performance. (2)The existence of independent director can enhance the positive correlation between compensation dispersion of executives and the company performance.(3) The general manager which is hold by the chairman will weaken the positive correlation between the compensation dispersion of executives and the company performance.