Research On Effect Of Compensation Incentives Of Senior Executives In Listed Foreig Trade Companies

Compensation is always the most important factor in the incentives system. And the senior executives often pay more attention to their compensation than other kinds of incentives. The analysis about senior executives' compensation is very important for the development of the firms, including the listed foreign trade companies. In this dissertation, a research has been made on the condition of senior executives' compensation and its effects on firm performance and investment, based on the statistics of 22 listed foreign trade companies.First, the concepts about compensation are defined. And the basic theory of compensation incentive and its effect are introduced. Based on the statistics of 22 listed foreign trade companies, the condition of executive compensation is analyzed and the main problems are pointed out; the influencing factors of compensation are also stated simply. Then, empirical analysis about the effects of compensation incentives has been made from two aspects, which are the effect to firm performance and the relationship with the firm investment. At last, some advices are recommended based on the empirical analysis and the problems pointed out, in order to improve the mode of senior executives'compensation in listed foreign trade companies.