Research On Influencing Factors Of Top Manager Compensation Of China’s Listed Corporations

The compensation system of the senior management of the modern enterprise is an important variable affecting the efficiency of the company. Under the condition of the separation of corporate ownership and control power, a good compensation system can constraint the self-interest behavior of executives effectively and motivate executives behavior toward stakeholder wealth maximization to achieve the modern company’s goal. In order to design and evaluate the executive compensation structure and incentive level reasonably, we should know the influence factors of executive compensation and its mechanism of action clearly. So, to research the influence factors of executive compensation system has a very important theoretical and practical significance.Based on principal-agent theory, human capital theory, and management incentive theory, combined with the domestic and foreign relevant research results, this paper constructs a theory model from the perspective of companies operating characteristics, governance structure characteristics, personal characteristics and the regional and industry characteristic. What’s more, in order to make an in-depth analysis of the mechanism of each influencing factors on executive compensation, this paper takes the corporate performance as the mediate variable of these characteristics variables impact on executive pay system. On this basis, this paper takes date of2559listed companies as samples from the year of2007to2011to build the multivariate linear model test the above four types of characteristic variable’s influence on executive pay and the intermediary effect of corporate performance in the path. The empirical results show that, company size, board size, independent directors’allowances, senior management age, post tenure, education background, degree of industry competition, regional marketization degree and the level of economic development, is significantly positive correlation with executive compensation; capital structure, management risk, ownership concentration, the proportion of state-owned shares is significantly negative correlation with executive compensation; proportion of independent directors and gender ratio had no significant correlation with executive compensation. To return on net assets and market value as the company performance indicators variables respectively through the mediation effect of test show that the company has significant influences on performance in most of the above path played a part in mediation or mediation role completely, and the return on net assets and market value contains information on the company’s performance is different, the two types of performance indicators in the part of the independent variables impact on executive compensation path in the mediation effect also have differences. In the end, I give five policy proposals on executive compensation of listed companies in China.The innovation of this paper lies in setting corporate performance as executive pay other intermediary variables influencing factors and selects accounting earnings and market value performance indicators to examine the mediation effect of other factors on the company performance. Defect of this paper is short of research on the influence factors of equity incentive and economic compensation and compensation structure.