Research On Legal Regulation Of Information Disclosure Of Executive Compensation In Listed Companies

Company executives is the abbreviation of the company's senior management or seniormanagers,and it is play an very important role in corporate governance. The high degree ofseparation of ownership and control, led to the company executives specializing in the managementfunctions. There are some differences and conflicts between the interests of executives andshareholders, because of the Shareholders and investors in a party to the disadvantage of theasymmetric information, and company executives in a party to the advantages of informationresources, coupled with the lack of their effective supervision.Company executives have anincentive to use this advantage to pay contract system to the influence and violation of theshareholders of the company interests. At the same time, executives and asymmetric informationbetween the shareholders of the increasingly prominent sparked a series of company salarymanagement problems, such as the decision making process of the salary information to thedecision not to open conspicuously unfair, remuneration committee brought by the lack ofindependence insider control of the trading behavior that executives self flood, these problems arenot allow to neglect in corporate governance.Therefore, how to weaken the asymmetric informationof the adverse impact of executive pay, how to overcome the defects of information disclosurebecome perfect company governance of the important issues.Information disclosure system as the solution to the problem of information dissymmetry basicsystem, is one of the core systems of the securities market. Our country in executive payinformation disclosure experience not to disclose, disclosure to gradually perfect process, but thereare still many defects.In the existing disclosure system, shareholders, especially small and mediumshareholders do not understand the design process of executive pay, and also the benefitrelationship between executive compensation and the shareholders. The existing compensationdisclosure system showed the disclosure content too simple, disclosure form too drab, scattereddisclosure model, it has not already restrict effectively executives paid through the interests of theshareholders form damage behavior. Many developed countries capital markets regulator, especiallythe United States securities and exchange commission have formed a set of relatively complete system about the senior executives salary information disclosure. It is a certain significance toperfect our country's executive compensation information disclosure system.