The Study On Influencing Factors Of Board Characteristics On Executive Compensation In Private Listing Corporation

In the modern market economy environment, the enterprise is regarded as the subject ofa series of contractual relations, characteristics of the separation of ownership andmanagement rights between owners and managers causes agency cost. Since the managerialcompensation system affects to the solution of agency problem directly, the core content ofestablishing a scientific corporate governance mechanism is Executive compensation. Inrecent years, the global economy’s priority is to save the financial crisis, but some of thesenior management of enterprises pay has not fallen instead rises, and the listing Corporationpay disclosure problems have been increasing. Executive compensation has become one ofthe hot issues in academic research from the perspective of corporate governance of executivecompensation system.Any executive compensation system is running in the corporate governance structure andalso influenced by the corporate governance structure. At present, there are many problems inthe corporate governance structure of our country and the anomalies of executivecompensation motivation. The board is the core part of corporate governance structure.Different composition of the board has diverse characteristics. The characteristics will affectthe scientific and reasonable of improving the pay. Above of all, the board of directors play acrucial role in the corporate governance structure, especially in the supervision of the seniormanagement personnel. So, this paper carries on the discussion on the effect of China’s boardcharacteristics to executive compensation problems The sample selection focuses on theChinese private listing Corporation, that’s a product of the development of Chinese privateeconomy and the development of China’s securities market.Empirical research should be based on the theory. Therefore, this paper studies on thecurrent situation of board characteristics and executive compensation in private listingCorporation from the reality of China; comments on the relationship between executivecompensation and the five aspects,including the independence of the board of directors,board size, board of directors, the board of directors behavior incentive characteristics,chairman characteristics. The ways that should be done to strengthen the system of executivecompensation includes a few aspects: the independent director system, the incentive andrestraint mechanism, the system of information disclosure of executive compensation.