Research On Senior Management Compensation Of Chinese Listed Commercial Bank

In 2008, the global financial crisis happened, and then real economic crisis has developed to devastate the global economy. Three years have passed, the global economy is still in a state of slow recovery. The financial crisis not only exposed the problem of global innovative financial instruments and risk control, also highlights the problem of executive remuneration.Internationally, the United States has taken a high standard of the tax system for financial predators and company executives still with high salaries after the financial crisis.At the same time, China's government introduced a variety of salary limit policy for the problem of excessive executive pay. Domestic and foreign scholars study on executive pay also set off a new round of high tide.As a part of business management, payment is very important. It has the most essential and dirct contact with each of the employees. Excellent paymrnt system determines the cost of human capital. Moreover, executives as a business leader and decision makers is critical to the development of enterprises, so their payment has become a subject of concern to everyone. Therefore, the establishment of a sound, scientific and reasonable executive patment system will help improve their overall strength and form a comprehensive competitiveness.In this paper, China's commercial banks were listed on the line of executive payment. Research on executive payment to a certain extent can seek to ease the current social contradictions caused by excessive executive payment, help businesses reduce agency costs, achieve effective incentive compensation and help businesses to harness the rapid development of new competitive advantage achieved.The reason why this paper selected executive payment of listed commercial banks of China as subject was that the banking industry had the characteristic of its industry, the overall payment levels in the banking sector were higher and society contradictions caused by the lack of scientific and rational evaluation of executive payment are the most prominent. As the most critical part of Configuration of social capital, the banking sector can enhance the efficiency of banks and the value of work if Optimize of the banking sector payment, promote the development of social capital more efficiently and then help other business develop and overall socio-economic development improve.This article was divided into four parts, namely:The first part contained the first chapter to the third chapter with the main theoretical introduction. The first chapter was introduction which is to introduce the background and significance of the study, research ideas and frameworks, research methods. With the introduction of background, we can lay the foundation for the text. The second chapter was Literature Review, through the introduction of pay-related theory, international research literature, national literature and the other part of the final summary, the literature related to this article were summarized and concluded. The third chapter was the basic theory of executive payment and performance which introduced the conception of the definition of compensation, commercial banks, the basic principles of compensation design and characteristics of commercial banks. Introducing through this three-part, clear language of this article based on the clarity of the most basic definition of the scope of this writing has been so limited in order to prevent ambiguity for the later empirical and theoretical basis on case analysis.Second part of the paper was executive payment and performance of empirical research as the fourth chapter. This chapter was divided into three parts: the commercial banks payment status, payment and performance of commercial banks and the conclusions, recommendations and limitations. Through the introduction of payment status of the commercial banks, we could get the status and salary compensation incentive of listed commercial banks of China in detail. With the analysis of payment and performance in recent three years with the data of commercial banks to market payment and performance, the establishment of a compensation design model and the empirical process in order to adjust the variables used to create an optimal model, the maximum degree of explanatory variables, made a basis for the case of the later part. In the conclusions, recommendations and limitations of the empirical part, analysed the problems and other limitations to the analysis and the corresponding recommendations. In the third part as the fifth chapter, a case of executive payment designed-Shanghai Pudong Development Bank. This chapter analyzed the current payment system, introduced the basic situation of the bank, payment system, nearly three years of executive payment and other descriptive statistics, analysis of the existing salary system and caused problems, and part of the model of empirical based on the executive payment data.PartⅣ, ChapterⅥ, text summary, limitations and deficiencies. The chapter concluded the paper:whether full analysis completed the formulation of goals and achieved the desired effect. Then made the deficiencies and limitations of text analysis of the summary in order to lay the foundation for future improvement, at the same time, make the final conclusion of this paper.In this paper, we could get the indicators of the executive payment of the bank with empirical analysis. To some extent, this model can explain inter-relationship between the performance of banks and bank executive payment, help users quickly understand the basic level of remuneration of bank executives. Shanghai Pudong Development Bank as a case study could prove that the model had some applicability to the purposes of this article.But there are still some defects in the article including:only considering relationship between executive payment and performance; only listed commercial banks investigated without considering other types of banks; limitations of empirical analysis; case studies limitations.