Empirical Analysis Of Executive Compensation Factors Of Information Technology Listed Companies

Executive Compensation has always been the concern of both the academic and practice. The owner commissioned company on behalf of the management, forming a relationship of principal-agent, but the two goals are inconsistent with the existence of contradictions. The problem is exacerbated by the complexity and uncertainty of modern business, fortunately, the organization can effectively solve the problem through the design and implementation of an effective compensation program. In today's economic and technological society, competition among enterprises is essentially a competition between people, especially the outstanding senior executives of information and technology industry who have become the company's core resources. I n view of the special nature of executive human capital, the issues such as how to entice senior corporate management towards the desired goals of the owner, how to effectively motivate, attract executives to promote the interests of the information and technology enterprise has become a key business development.Considering the specific circumstances of China's information technology industry, this paper has explored the factors affecting pay in this industry.This sample of the article is A-shared listed companies in Shanghai and Shenzhen of the domestic information technology industry. At first, the paper theoretically analyses the factors affecting executive compensation of listed companies in the information technology industry,provides the underlying assumptions and researches on the variables------such as firm performance, firm size, state--owned shares proportion, stock rights concentration, the legal person share proportion, board size, the independent directors proportion, asset-liability ratio, company age, company areas-----which impact on executive compensation. And finally, a multiple linear regression analysis of the factors affecting executive pay in the information technology industry has been made with the help of the software SPSS 17.0 to achieve the following conclusions:l.There exists'a significant positive correlation between the corporate performance and executive pay in listed companies.2. Firm size plays a critical positive effect on executive compensation.3. The negative effects that the state-owned shares proportion shares put on executive pay are not obvious, but there is a significant negative correlation between ownership concentration and executive concentration.4. Board size, independent directors proportion and asset-liability ratio are not discovered to have a significant influence on executive pay.5.The age and region of the company impact executive compensation obviously.According to the conclusions based on the analysis, a couple of specific proposals---increasing pay levels, improving pay system, consummating the internal goverance structure, raising the independence of the board and increasing the proportion of independent director etc.----are put forward.