Independent Directors Of State-owned Listed Companies Pay Levels, Structure And Corporate Performance

In a sense, the core of Independent Directors System is the compensation mechanism of Independent Directors (IDs). Furthermore, study on governing and influencing factors about IDs compensation is the premise to improve the compensation mechanism of IDs. Although there are many influencing factors about IDs compensation,market standard ,outstanding achievement and human capital is main decisive factors, and then, The paper discusses the operation mechanism of these decisive factors, constructs IDs compensation system to adapt to China, makes full use of the past annals of listed state company to analyse IDs compensation in detail, and currently probes into the relation among compensation level , compensation structure and firm performance in china listed state companies by linear regression .Through the demonstration analysis with cross section data, there is a feeble negative relativity between IDs compensation level and firm performance , but there is a feeble positive relativity between IDs compensation level and firm performance with time data. In the future, feeble positive relativity between them is the stable change trend.There is an evident positive relativity between the corporation size and the IDs compensation level in Chinese listed state company ,when the corporation size is from 2 billions to 4 billions .there is an evident positive relativity, but there is only an feeble positive relativity, not evident.There is an slight positive relativity between percent possessed by state and the IDs compensation level. When the percent is from 40 to 60, the extent to their relativity is at low level. When the ratio of independent director is under 1/3, there is coefficient between percent possessed by state and the IDs compensation level at lowest level. Thus, we can guess IDs tend to increase their own compensation.There is a slight positive relativity between the times of board meeting and IDs compensation level, but not evident. 7 board meetings may be an turning point, and if above 7 times, IDs can be compensated. Therefore, there is a rather positive relativity between the presence condition of board meeting and IDs compensation level. Furthermore, the presence condition of board meeting became a major appraisal index to determine IDs compensation.Generally speaking, the current compensation mechanism of IDs in Chinese listed state company goes through the primary phase of development. There are many problems to deal with. There is an slighterrelativity between the IDs compensation level and the IDs compensation structure, and between the IDs compensation level and firm performance .moreover, the IDs compensation level is too low and the IDs compensation structure remain single, so the author think that the current compensation mechanism of IDs in Chinese private listed company is more reasonable than in Chinese state listed company , and Chinese listed state company deserve to use for reference.The current compensation level of IDs in Chinese listed state company does notinfluence the IDs compensation structure evidently, and the significant factor about the IDs compensation structure is institutional and cultural in all probability. Moreover, Chinese listed state companies seem have known and begin to reform these problems.