An Empirical Study Of Chinese Listed Bank Governors Incentive、Compensation Difference And Bank Performance

After the full opening of China’s financial markets, increased competition betweendomestic and foreign banks. In essence, this competition is competition of modernbanking system. the core of the modern banking system is modern banking corporategovernance mechanism. Therefore, the governance structure’s optimization is the onlyway improving our country commercial bank competition. The Commercial banks takea kind of special company, both universality having general company and have whoseparticularity.For the purpose of investigating the rationality and feasibility of restricting thesalary among the management at home and abroad, and find the basic problem arousingthe restricting in listed banks as well as the solution to it, this paper takes14listedbanks in China as a case, firstly，on China’s listed banks CEO compensation factorsempirical study; then another empirical research that According to the Tournamenttheory and Behavior theory, this paper not only study the factors affecting the pay ofCEO, but also the correlation between Compensation Difference and Bank Performance.Finally, a empirical study on the relationship between the structure of managers’ salaryand the performance of corresponding listed banks.The result of study show that the senior manager’s pay of list banks no obviouscorrelation between the performance, and employee compensation incentive and bank’sperformance have a significant positive correlation; The Bank’s equity incentiveperformance of listed banks in China is not significant. Bank executives internalcompensation differences are championship competition mechanism, namely, bankexecutives appropriate compensation differences can enhance the performance of banks.Compared with other industry salary structure found in contrast, Chinese listed bankspay structure has certain rationality. In addition to the bank and bank performanceregression analysis found that, the CEO of the bank payment and bank performancerelation degree is not tight enough, need later in salary system reform further strengthen.