An Empirical Study Of The Internal Pay Gap And Its Growth

Accompanied by the gradual increase of the number of listed companies in China,senior management compensation management becomes more important, public paygap between senior management and staff of the degree of concern is graduallyimproving. Compensation design reasonable or not the development of enetrprisesplay an irreplaceable role in this article on the basis of drawing on previous paysystem, trying to find the the internal pay gap (the pay gap between executives,executives the pay gap between employees) the relationship between the sustainablegrowth of enetrprises. Most pay within the enterprise performance and corporate paygap, there is little related to business growth, we want to study the relationshipbetween the the internal pay gap growth, thus conducive to the sustainabledevelopment of enterprises. Internal pay gap, including the senior management teamwithin the pay gap and senior management personnel and staff of the pay gap betweenthese two aspects. In this paper, from2009to2011’，Chinas Shanghai and ShenzhenA-share listed companies for the study, an empirical study on the relationship betweenthe listed companies in China’s internal pay gap and its growth.This article ifrst learn the basis of the growth, according to the company’s pastifnancial indicators derived growth score，this growth score represents the degree ofdevelopment of the enterprise, and then study the growth score and corporaet pay gapdependency relationships.Secondly，according to the the internal pay gap system, the article describes twoaspects of the pay gap, absolute pay gap relative pay gap study on two aspects of thepay gap. The ifrst aspect is the internal senior management pay gap in this area is tostudy the pay gap between the degree of influence on the growth of enetrprises. Thesecond aspect is the gap between the remuneration of senior management personneland staff, is to study the extent of the gap between the two business growth. Thesetwo results of the study were analyzed to determine what the pay gap between theory(Championship and behavior of theory) is conducive to business growth.Derived on the basis of the above research, corporate executives within the paygap and growth is a positive correlation between pay gap growth is a positivecorrelation between the internal senior management personnel and staff, indicatingtournament theory can be applied in the majority of listed companies in China.