A Study On The Correction Between Top Management Compensation Incentives And Corporate Performance Of The Coal Industry Listed Companies

Twenty-first Century is the era of knowledge economy, innovation is the motive force of the development of knowledge economy, knowledge and high-quality human resources is the most important. The famous American economist Lucas regarded human capital as the true source of economic growth in its new economic growth theory. As the human capital’s main technical innovators and management, they are the core of enterprise decision-making, deciding the destiny of the enterprise, and directly affecting the enterprise’s development direction. So, managers and executives in the era of knowledge economy is particularly important. Executives with what kind of state investment management of enterprise operation, directly related to the survival and development of enterprises. So executives incentive problem has become the focus of attention of the enterprise.Coal is the main energy source in China and important for industrial raw materials, for example steel, chemical, electric power, building materials and other industries to the upstream industry, coal industry development is related with the healthy development of national economy and energy security, coal industry development must rely on technical innovation management innovation road. Coal enterprise performance to a large extent is effected by the executive. And pay level is the important factors of executive innovation management. This article to the coal industry listed companies as the research object, on the executive compensation and corporate performance makes a positive analysis of the relation.This article based on empirical studies of the domestic and foreign executive compensation and corporate performance, regarded22Coal Industries which were from2007to2010two in Shanghai and Shenzhen City listed companies as the research object. I studied the coal industry including companies operating status and executive compensation situation, then used the descriptive statistics and the hypothesis testing method to study the relationship between executive compensation and corporate performance. The conclusions of this paper are:from the descriptive statistics, various enterprises executives annual salary level are height, gap;" zero stock" the phenomenon is more serious, and the shareholding ratio decrease, no implementation of the equity incentive; corporate performance indicators also has the very big difference. From the hypothesis testing, executives annual salary and enterprise assets are positively related, and the corporate financial efficiency, liquidity and development ability of an inverted U relation; managerial ownership and enterprise capital operation status, financial situation is negatively correlated, and the debt paying ability, development capacity positively correlated, partial validation of the hypothesis.Based on the above research conclusions, this paper put forward the following suggestions:rational application of the annual salary system, accomplish truly" be paid to effect"; improve the coal industry listed companies on executive equity incentive, and pay attention to long-term incentive; establish occupation manager market mechanism, improving their competition is fair; to strengthen information disclosure of listed companies, improve the information.