Northwest Executives Of Listed Companies Pay Levels, The Pay Gap Between The Company's Performance-related Research

The economy among our country different regions is enormous unbalance, eastern region has raced ahead in economic development, central region take second place, west region have the worst economic development. The GDP of north-west region is less than south-west region. Therefore, the north-west region is the least developed region. Our government paid close attention to north-west region; in addition, government introduced many supportive policies. Listed companies play an important role in improving the economy of the north-west region. Executives in a company have important influence in company performance. The relationship between executive compensation and firm performance of the north-west listed companies attract many scholars’and ordinary attention.The article is based on the theory of agency theory and behavioral theory, then2assumptions was proposed. Listed companies which were listed before2007in north-west are chose as samples. There are70samples through a series of filters. I selected financial information and corporation governing structure information of listed companies in north-west region. Descriptive statistics, correlation analysis were conducted. The article deals with the current analysis of north-west region listed companies’executive compensation and firm performance. In order to verify2assumptions, the panel data were put in model. The article draws some conclusions about south-west listed companies. The correlation between executive compensation and firm ROE is weak correlation. Executive compensation and firm EPS is no-correlative. Executive compensation and firm EPS is no-correlative. Executive compensation and firm total assets is strong negative correlation, in another word, when a company’s total assets is more, it’s executive has more compensation. Executive tend to expand the scale of the company. Executive compensation and Pay and performance appraisal committee is weak correlation, which mean north-west region’s Pay and performance appraisal committee didn’t limit the executive compensator. Executive compensation and duality of CEO and chairman is strong negative correlation, when a company’s CEO and chairman is a same person, executive always has more salary. Executive compensation and size of the supervisory board is weak correlation. Executive compensation and ownership concentration is strong negative correlation, if a company’s ownership concentration high, its executive salary is less. The GAP between executive and staff has strong negative correlation with company performance. Widening the gap can improve the company performance. The building of Pay and performance appraisal committee can reduce the gap. Then, the article gives some suggestion about perfecting the system of executive compensation. Finally, the author point out insufficient the place still to be improved.