The Influence Of Executive Pay To Corporate Performance Research

In the era of knowledge economy, Competition among enterprises is actually a talent competition between the executives, especially the excellent executives who has become the core resources of the enterprise competition. In view of the special nature of executive human capital, good pay incentives mechanisms can lead executives to work hard to improve the performance of the company.Our country medical biology listed companies shows:accelerated growth in executive pay,high return on investment,and executive talent flow rate. How to effectively attract, motivate executives and thus enhance the interests have become the key to the development of enterprises. Executive compensation plays such a role. Executive compensation has also been the focus of attention of academics and business.To fully draw on the research results of the existing literature at home and abroad, This article has selected our country medical biology listed companies from2007to2010four years of data for research.Under the condition of different corporate governance structure, We has studied the impact between executive compensation and enterprise performance.The empirical conclusions as follows:First, the level of executive compensation, managerial ownership level and the executive compensation gap and corporate performance is positively related to enterprise through these three factors motivate executives to work hard to improve business performance. The relationship between managerial ownership level, the executive compensation gap and corporate performance is more significant; Second, based on the angle of corporate governance structure that, when the company is state-controlled, positive correlation between executive compensation and corporate performance; the proportion of independent directors can enhance the positive correlation between executive compensation and corporate performance.According to the analysis of the empirical results, some design principles for our country medical biology listed companies executives pay system optimization recommendations. We has studied the impact between executive compensation and enterprise performance trying to incentive to provide the empirical evidence on executive and providing the necessary basis of effective compensation mechanism for our pharmaceutical and biotech companies.