The Research Of Board Structure, Executive Compensation And Corporate Performance

With the rapid development of China ’s economy and the gradual disclosure aboutdata related to executive salary, the salary of senior managers in listed companies issue hasbeen one of the hot spots of the attention of the social parties. After the financial crisis in2008, unrest in the doldrums of the global situation, but senior managers of listedcompanies is still get high pay, it has once again become the focus of attention. Althoughexecutive salary has been researched, it is been researched Separately on the relationshipbetween board structure,executive pay and company performance, related research amongthe board structure, executive compensation and corporate performance is relatively small.The research on board structure, executive compensation and corporate performancecorrelation has become the important issues that need to be addressed.The sample based on2001—2010annual listed company collecting Chineseexecutive salary data to set up the multiple regression model and validate the relationshipbetween board structure, executive salary and company performance. Through analysis ofthe results of regression, when control the decisive economic factors, the board structureexplained the typical changes in executive pay. The coefficient of the board structurevariable show that the board structure effects the executive salary. We find that thepredicted compensation arising from these characteristics of board structure has astatistically significant positive relation with the preceding firm return performance.Overall, our results suggest that there are linear correlations among board structure,executive salary and company performance.Through the research on the correlations among board structure, executive salary andcompany performance, some policy recommendations for improving the executive salarydepending on the results of the analysis may be put forward, and the results are referentialbasis to improve the system of executive salary. Subsequently, it is convenient to carry outnormative and empirical research.