The Correlation Of Managers’ Compensation And Environmental Performance Of Listed Companies

Our country has made rapid development in the economic field, GDP constantly rising, but for a long period of time, our economic development is at the expense of the environment in return. At present, the environmental issues in China is becoming even more prominent, especially the frequently occurred haze weather around the country this year gave us a wake-up call. The enterprise is one of the sources of environment pollution, in order to improve environment performance, it is necessary to reduce pollution from the source. Improving the environmental performance of the enterprise is the key to reduce pollution. At present, many enterprises of a certain scale, such as listed companies, have a phenomenon that the owners and managers are separate, and the managers are responsible for the affairs of the enterprises directly. Therefore, improving the environmental performance of companies which appear on the market is intently related with their senior managers. Managers’compensation is one of the reasons which promote executives of listed companies to take action in the environmental. Therefore, how to increase the environmental performance and furthermore to enhance managers’compensation of listed companies, so as to make both of them reach a win-win consequent, is an express problem which is needed to study currently. Researching of the relationship between them has a great significance for the environment protection of listed companies in their day-to-day production activities.In this paper, we used the theory of environmental performance and managers’compensation as premise, listed companies in serious polluting industries as study objects, and listed companies’ annual reports, social responsibility report, sustainable development report, company website, statistical yearbook as data source, and measured the environmental performance by way of both qualitative and quantitative aspects respectively. Wherein, qualitative aspect means scoring environmental performance through certain designed indicators, while quantitative aspect defines the environmental performance through specific formula measurement from the view of environmental inputs, environmental standards and environmental benefits. We discussed the relationship between environmental performance and executive managers’remuneration in each definition by constructing a regression model, and then provided a theoretical foundation for the win-win results, namely, executives of listed companies increase their own pay through implementing green production and improving environmental performance. This thesis was consisted of six parts:The first part is the introduction, the main content is the elaboration of the research’s content,background, connotation and the research results in this area previously. The second part is to improve the environmental performance of the enterprise motivation analysis, analysis of the need for enterprises to improve their environmental performance, to provide a theoretical basis for further study reasonable; The third part of the environmental performance of executive compensation;part of the listed company executive compensation and environmental performance related to the study design, including the study assumptions, the model also includes building an important part of the evaluation index system, through both qualitative and quantitative methods to establish environmental performance evaluation;Executive pay and environmental performance of research and analysis, namely the use of SPSS statistical software to heavily polluting industries of the sample companies in2011listed companies for the study, the qualitative and quantitative aspects of environmental performance and executive payregression analysis; Sixth is on the conclusions and recommendations made for the conclusion through empirical research.Experience a longer period of reflection and exploration, this paper mainly has the following characteristics:a more comprehensive analysis of the hidden links between environmental performance and managers’compensation, through several intermediate variables between the two conduction mechanism. Application two methords which is qualitative and quantitative to measure environmental performance is innovative, be provided wich a certain degree of representativeness.