The Study Of Executive Layer Power Influence On Pay Gap

This paper which takes330listed companies from A share of Shanghai Stock Exchangeas study object,studies listed companies’ executive layer power influence on pay gap.And thispaper also studies the relationship between executive layer power and pay gap by pay gaptheory,principal-agent theory and executive layer power theory,theoretically analyzesexecutive layer power influence on pay gap,comes up with assumptions，get conclusions byempirical test and sets forth innovational point and shortages.Empirically studing the influence of executive layer power on executives’pay gap,thispaper gets some principal conclusions: firstly,equity can do some works,properly improvingexecutives’holding shares proportion can widen pay gap, which has good impact on efficientoperation of enterprise.Total samples and various industries all account for executives’holdingshares’good impact on pay gap.Secondly, chairman,general manager,or chairman of the boardof supervisors properly comes from controlling shareholders units,which can widen pay gapand improve corporate performance.In wholesale and retail，transportation from services andmanufacturing, construction industry from industrial, the situation that chairman,generalmanager,or chairman of the board of supervisors properly comes from controllingshareholders units can widen pay gap and improve corporate performance;In social service,integrated industry from services and electric power from industrial,if chairman or generalmanager comes from controlling shareholders units, pay gap will be widened and corporateperformance will be improved;In real estate,information from services and mining industryfrom industrial,if general manager comes from controlling shareholders units,pay gap will bewidened and corporate performance will be improved.Thirdly, the number of sessions of theboard of supervisors has some impacts on pay gap.In real estate,wholesale and retail, socialservice, transportation, integrated industry from services and electric power, constructionindustry from industrial, listed companies’properly decreasing the number of sessions of theboard of supervisors can widen pay gap and improve corporate performance,but inmanufacturing, mining industry and information industry,it is good for listed companies toincrease the number of sessions of the board of supervisors.