Our Financial Listed Company Executive Compensation And Corporate Performance Correlation Studies

With the continuous development of market economy in China, the financial industry system is being perfected. Due to the listed companies, especially listed in national financial company, and it plays an important role in economic system.In 2008, the global economic crisis triggered by the U.S. financial crisis also let us know the great effect which caused by financial enterprises for the entire national economy, therefore financial enterprise corporate governance research is important and necessary. And how to motivate executives is the priority of enterprise management research, it involves the formulation of executive compensation system.This paper purpose is to quantitative research the relationship between executive compensation and corporate performance, to draw conclusions and give some suggestions to the formulation of executive compensation system. Samples included executive pay and performance index data are from Guotaian database, there are totally data of 27 companies, with the incomplete information of individual companies removed.At the conclusion of the domestic and overseas scholars about executive compensation and the correlation of corporate performance and the relevant theoretical studies, we adopt the classical regression analysis technology. This paper use descriptive and statistical analysis in the variables of executive compensation in listed companies, and numbers of holdings and the correlation of operating performance with the company. Results show that: there is a significant positive correlation between executive compensation and financial enterprise listed company size, and a negative correlation between and state-owned shareholding proportions. Executive pay and company management performance have Inverse correlation, which is different from other listed companies. But executives'shareholding ratio have no significant effect on executive pay, namely shareholding ratio does not exist linear correlation with executive compensation.Finally based on empirical research, we can draw the conclusion and put forward Suggestions to the incentive mechanism of listed company in the financial industry executive compensation:encouraging its construct reasonable incentive mechanism, standardizing executive rights and obligations, and supporting the establishment and management incentive of institutional mechanism.