Executive Team Internal Salary Gap And Company Performance

As the core groups among enterprise employees, senior managers has close relationship to success or failure of enterprise's prosperity and decline, so to choose to suit the development of the enterprises and to give full of sufficient and reasonable incentive is an important link of perfecting the corporate governance and enhancing company performance. To ensure that executives to make the decision to maximize shareholder value, there must be reasonable design of the various incentive measures and the corresponding restriction system. By means of the establishment of scientific executive compensation system, senior management can be given an effective incentive toguide senior management behavior and to reduce or eliminate enterprise principal-agent problems. In recent years, along with our country enterprise, government and media attention on executive pay increases, executives as center of corporating governance, whose salary designs and the salary of the gap between the design of enterprise is whether the level of performance of the positive guidance, are the important test of problems to be solved peremptorily.This paper firstly reviews related literatures from the two aspects of foreign and domestic internal team salary gap between executives with corporate performance. And secondly based on taking the principal-agent theory, championship theory, behavioral theory, this paper also put forward the research hypotheses and constructs the model in 2006-2009. Taking deep Shanghai two city a-share listed companies as samples, the relevant data sample size for 4882 A final salary of senior executives, internal team with corporate performance gap between the empirical analysis.This empirical analysis is divided into four parts:Firstly it analyzes the correlation of internal team salary gap between executives with corporate performance via descriptive statistics and analysis of related variables; Secondly By regression analysis method and grouping analysis inspection again listed company executives internal team salary gap and corporate performance; Thirdly, this paper applied to executives HAUSEMAN inspection of internal team salary gap and corporate performance for Self-generating inspection; Fourthly, in order to further the relationship between the regression results verified this paper, it further analyzes robustness analysis verified, effective internal team performance and executive compensation between the performance of the company.The empirical results show that significant positive correlation exist between internal team salary gap between executives with corporate performance, widen the gap to the company performance salary, support and verify the ascension and suggested that our championship in theory the listed company should adopt appropriate compensation gap widening the salary incentive design.