Relation Study On The Top-management Compensation And Performance Of China's Listed State-owned Banks

After financial crisis broke out,top-management compensation's soaring attracted more and more social public's attention.China followed the situation of the salary limit.Whether executives overpaid have caused tremendous moral disk?Do the high salary of the executives play a decisive role in the comprehensive performance of the financial industry?How to make the top-management compensation and corporate performance to achieve internal consistency?In the face of the storm, how can financial enterprise survey his own salary incentive system to establish reasonable internal incentive and maximize the reduction of transaction cost betweenmanagers and owners.Based on the research at home and abroad, the paper got the annual financial data from 2007 to 2010 in Shanghai to analyze the sensitivity between executive compensation and performance of the listed state-owned banks by the mean of multiple linear regression. With the reference of "Financial state-owned enterprises performance evaluation index" promulgated by Ministry of Finance in 2009, the paper determine the comprehensive performance index and index weight.The empirical results show that executives salary is positively related to comprehensive performance and ownership concentration of state-owned banks and it has no significant correlation among the executives salary and the size,the independence of the board of directors and the scale of the board of supervisors.According to the empirical results,the study put forward some suggestions to further improve the performance of banks.