A Study On The Correlation Between Executive Compensation And Performance Of Listed Companies In Central Enterprises

SASAC of the central business executives operating performance assessment began to shift from profits to the EVA since 2010, and EVA score 50 points far exceed the profits score 20 points. Shifting the focus of the assessment is intended to guide the central enterprises to take value creation road. Changes in indicators of performance evaluation and the introduction of "central management enterprises who pay system "reform program", meaning that the central rate of executive pay will be mainly influenced by EVA rather than the impact of the past based profit indicators. Comparing remuneration and results of operations before and after EVA evaluation method of the central enterprises listed companies which can examine the impact and extent of EVA on executive pay, inspect implementation effect of SASAC EVA assessment methods, so as to further improve the EVA-based incentive compensation system.In addition, through a comparative analysis of correlation between different business performance appraisal standards and executive pay, reveals main factors of the central enterprises listed companies executive payIn this study, the main method is empirical research method, and on the basis of theoretical analysis and definition of the basic concepts, determine the object of the study, put forward research hypotheses, definite research variables, build research model; Then, follow the implementation process of EVA assessment methods to divide sample data into three groups of 2008-2009,2010-2012,2013-2014, namely 2008-2009 is not implemented EVA assessment methods of data set in,2010-2012 is the beginning of the full implementation of EVA assessment methods of data set in,2013-2014 is to strengthen the implementation of the EVA assessment methods of data sets, using statistical software SPSS 19.0 to study each of these three groups of sample data and do descriptive statistical analysis, correlation analysis, univariate and multivariate linear regression analysis, then make horizontal comparison in the same data set of the extent of EVA, ROE, EPS explanation of executive pay, longitudinal comparison three sets of data in EVA, ROE, EPS explain changes in executive pay levels, and comparative analysis of executive pay to explain the degree of change in the operating results of different combinations of variables before and after the implementation of EVA assessment methods; Finally, on account of the results of the empirical analysis we draw conclusions, and according to the effect of the implementation of executive compensation system and the problems for the central enterprises listed companies EVA evaluation method proposed policy recommendations.By studying we can draw the following conclusions:(1) there is significant positive correlation between Executive pay and EVA, indicating that the implementation of the central enterprises EVA assessment methods are effective, and central enterprises listed companies are establishing EVA-based compensation incentives.(2) with the weight of EVA performance evaluation rises, the extent of EVA explanation of executive compensation is gradually increasing, indicating that EVA-based assessment methods play an increasingly important influence on its executive compensation. (3) compared to the traditional accounting indicators (ROE, EPS), the degree of EVA explanation for executive compensation gradually show the superiority, and gradually become the main factor affecting executive compensation but implementation of the central enterprises listed companies EVA evaluation method is a long process, it may need further promotion so that the impact of EVA-based salary system on executive compensation will become increasingly evident.