An Empirical Study On Executive Pay And Performance Of Listed Banks

With the listing of the Agricultural Bank in 2009, the remuneration of bank executives listed the issue widely discussed by social media. In fact, the separation of ownership and management will inevitably lead to the emergence of this phenomenon. Improve and perfect the incentive pay system reform of China's listed banks, the focus of the current one, so the staff, especially senior executives payment incentives also have important theoretical significance and application value. This paper studies China's listed banks and banking executive compensation issues related to performance. Incentives from corporate executives to discuss the issue began to take full account of the characteristics of the banking sector, listed banks from the perspective of the unique problems of its executive incentive compensation.This article began with the problem of how to encourage CEO, described the background, contents, ways and means, that the main problem of this study and other related issues need to explain.This article first introduced the current domestic and foreign executive pay and company performance on the research literature are reviewed. Then introduced the principal-agent theory, incentive theory and human capital theory. On this basis, point out the defects in the property rights of commercial banks has led to the weakness of incentive pay.And executive compensation for management of listed banks in China, analyzed the current situation, the slow development of China's capital market has led to bank executives incentive pay is not perfect, that listed banks in China to focus only on short-term incentive compensation incentive, without considering the long-term incentive. Then described the measure of bank performance, and the advantages and disadvantages of each index were compared, chosen as a measure of return on net assets of bank performance indicators for the empirical study later in preparation.Through empirical research investigating the relationship between payment and performance, and hopes to further expand the bank. This research work to help establish an effective incentive to current CEO is conducive to commercial banks to participate in market competition. Empirical study found that executives of listed bank performance and a positive correlation between cash compensation relationship, but the proportion of bank performance and managerial ownership is not significantly related, indicating long-term executive compensation incentive mechanism of commercial banks is not perfect.In addition, the result also shows commercial banks'executive pay and bank performance, bank size are obvious positive correlation, but executives did not pass the t value of the shareholding ratio test, indicating the proportion of managerial ownership has not accounted for in the executive pay system, the proportion is too large On executive pay does not constitute a great impact.Thus, given the long-term incentive listed banks, including the establishment, including executive compensation system a reasonable policy recommendations.