State-owned And Non-state-owned Holding Listed Company Executive Pay Difference Analysis

Executive pay is an important issue in the corporate governance research. Theresearch about Executive pay may help the company management theory and practiceperfect. With the establishment of a modern enterprise system and the disclosure ofexecutive pay, the management’s compensation has been social issue concerned byparties, especially Chinese listed company executive pay have soared in recent years.This phenomenon has serious controversy from all walks of life. Salary is a kind ofimportant means of incentive as labor compensation. Especially in the separation of thetwo right, setting up a compensation is bridge between owner and operator cooperation.From the agency theory perspective, as a client company shareholders for character,designing the pay of management staff is helpful to solve the problem of agency effortsand to improve the managers’ incentive performance and value. Executive pay isconsidered to be the key solving agency issues between shareholders and management.The salary standard designed properly can reduce the principal-agent cost betweenshareholders and management and encourage the executives in to improving the valueof the company to increase shareholders’ wealth. But if the improper design will lead tothe incentive effect on the failure of executives, causing executives only for the pursuitof private interests and sacrifice of the interests of the shareholders.Reasonable executive pay is to establish an effective core of company governancecontent and the key of success or failure of the enterprise reform and development inChina, so executive pay is not only of theoretical significance of research but also arealistic significance. The main focus of the current salary research of executives layeris: the level of salary and compensation structure. There are a lot of research for level ofexecutive pay, such as executive compensation and corporate performance of the relatedresearch, executives layer holdings and performance of the company research and so on.Based on this, it made some achievements. But for another problem-the relativeresearch of the structure of salary is not too much. The gap of Executive pay betweenthe executives is very important part of pay design. Different property rights, differentprofession, different areas and so on can create the big difference of executive pay. Sothe gap between the different structure is worthy that we do more research.This article based on the different property of the research separates the researchobjects into state-owned holding listed companies and non-state-owned holding listedcompanies, and studies the differences of their salary promoting reform and development of health of our country enterprise. The research of promoting corporategovernance research project makes the salary system reform more reasonable andprovides referential ideas more fairly in the direction of the development.