The Correlational Study Of Listed Company Executive Pay Structure And Enterprise Performance

This paper is based on the principal-agent theory,principal-agent theory in the shareholdersof a company is the principal, the management company, but the company businesscircumstance entrust agents, namely senior executives. But both the pursuit of the goal isdifferent, the principal are in pursuit of the company’s development potential and profit. Agentare in pursuit of the maximization of self-interest, the disagreement of target easily lead tooperator according to their goals operating company, so shareholders will need to use a kind ofincentive mechanism constraint executives, and salary incentive mechanism is the bestconstraint mechanism. This paper will research executive pay is constitute of executiveincentive, the executive incentive through the company performance. Is the executive payconstitute to performance of the company relevant research.This paper will executive pay is divided into two parts, one is the basic wage is seniorexecutive salary; The other is a senior executive salary holdings, the executive’s holding thesalary is determined by holding executive decision, the last part is the executive salaryshareholding proportion of total salary, through the study of the three parts of the executivesdata and enterprise performance data, carry on the analysis, thus draws the relevant executivepay and the relationship between the enterprise performance.Previous scholars on executive pay and enterprise performance correlation research has alot of, the innovation of this paper place mainly in the executive pay and holding the shares ofsalary to total salary the proportion of enterprise performance research. Through the research ofthe executives holding salary and the relationship between enterprise performance can beconcluded that our country executes executives holding policy whether can very good incentiveexecutives of listed companies, research and executive salary shareholding proportion of totalsalary is hope that executives shareholding and executive salary reached the proportion of howto best drop incentive enterprise executives.Through the research, the conclusion is:(1) executive pay and enterprise and the short-term, long-term performance has a positivecorrelation. And significantly related.(2) executives holding salary and enterprise short-term and long-term performance alsohas positive correlation. Show that the listed company give executives shareholding is not only a welfare consideration, executives shareholding can very good incentive companyperformance. Therefore the listed company on executive pay when considering, monetarycompensation is very important one part, but executives shareholding incentive to executivescan also play a big role support.(3) executives holding salary accounted for the proportion of salary and enterpriseperformance there is a correlation.