Study On The Influencing Factors Of Executives’Compensation

Recently, the development of market economy in our country bring thecompetition between enterprises increasing, in which the essence is competition forthe senior managers, that is the core of enterprise resource, As the informationdisclosure system in China improve gradually, compensation as the main way ofincentive executives, received wide attention of scholars and society. At the sametime, the influence factors of executive compensation also became a hot issue inacademic research. Study on the influence factor of executive compensation caninsight into the influence factors of executive compensation, provide the reference forthe establishment of the effective incentive mechanism of executive compensation,and can carry on the appropriate incentives for executive, to mobilize the enthusiasm,strengthen the loyalty and satisfaction, reduce agency cost, improve the enterpriseperformance.This article selects the related data from2006to2012of the listed companies inZhejiang and Sichuan province as sample to study the influence factor of executivecompensation from the aspects of corporate performance, company size and otherfactors by using SPSS, the results showed that:(1) Company size and corporateperformance have become the common and important influence factors of the listedcompany executive compensation of Zhejiang province and Sichuan province.(2)Corporate performance has greater effect on the executive compensation of listedcompanies in Sichuan than Zhejiang province. However, since2011the company sizeon the effect of executive compensation of listed companies in Zhejiang provincegradually is greater than the Sichuan province.(3) Executive education begangradually become the factor that affect the executive compensation of listed companyboth in Zhejiang province and Sichuan province. However, its effects on Sichuan isstronger than Zhejiang province.(4) Executives age has an impact on executivecompensation of listed company in Zhejiang province rather than Sichuan province.(5) Board size, the proportion of independent directors, executive shareholding ratioand other factors have few effect on the executive compensation of the listed companies of Zhejiang province and Sichuan province.According to the above conclusions, the paper puts forward suggestionsrespectively to Zhejiang province and Sichuan province to improve the executivecompensation incentive mechanism and provide similar situation provinces reference.