| December 11.2006. the Chinese government fully honored commitments to the WTO:fully opened RMB retail business to foreign banks, which makes the competition in Chinese banking sector, particularly among commercial banks, more and more intense. Competition among modern enterprises has become increasingly competitive in human capital, especially for the senior management personals with special operations endowment, and there is no exception for commercial banks. Pay, as an important means of incentives, is increasingly paid attentions by more and more enterprises, and therefore, how to build a fair, reasonable, and highly incentive executive pay system to attract and retain outstanding senior managers is an important issue which all commercial banks must face and resolve. In recent years, along with the event of Guotai Junan's "3.2 billion high pay", the executive compensation issue of financial industry has been put to the "front" again, and commercial banks, as a core component of the financial system, its executive pay problem will naturally be pushed to the "cusp". Commercial banks, although have their specificity, also own more general business characters, so. improve the operating performance is always the first. As a result, before solve the problem of the executive pay of commercial banks, it is necessary to firstly clear the relationship between the executive compensation and business performance in order to lay the foundations for the specific compensation system.According to above issues, this paper makes the statistical analysis of the financial data about the monetary compensation of executives, independent director ratio, size of the bank, return on equity, earnings per share and others of the Chinese 14 commercial banks from 2006 to 2010 through Eviews 6.0, and then research and discuss the correlation between monetary compensation of the executive, independent director ratio, bank size and the bank performance which uses the net return on equity and earnings per share as its evaluation indexes, and based on the results of statistical analysis, some corresponding countermeasures and suggestions are proposed for the executive compensation system of commercial banks. The main research method of this essay is empirical research. The contents of this article consist of five parts:The first part is the introduction which mainly includes the study's background. purpose, meaning, and the design of the paper's research framework and methodology.The second part is the theory and literature review and mainly reviews the related theories and literatures of the executive pay issue.The third part is the study design, including research framework, hypotheses, variables operational definition and measurement, modeling, sample selection and data sources.The fourth part is the data analysis, which is also the core of this research, and the content mainly include the descriptive analysis and correlation analysis of variables, and test hypotheses through the regression analysis of the research model and so on.The last part is the conclusions and policy recommendations for the study. Some conclusions are given base on the results of statistical analysis, and some suggestions about the executive compensation system of banks are also proposed.In the context of the promoting of income distribution system reform, the executive pay reform of commercial banks will naturally be put on the agenda, and this study test the proposition of the positive correlation between the executive pay and business performance, and then according to the executive pay system issue of commercial banks, proposes the compensation incentive mode which takes comprehensive performance evaluation system as reference and combines short-term incentives and long-term incentive pay incentive model combination, and look forward can provide some suggestions and references for the to reform practice of executive compensation incentive system of commercial banks to provide a practical reference and reference. |
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