An Empirical Study On The Factors Affecting Executive Compensation In China 's Commercial Banks

Executive compensation issue of China’s commercial banking has been a strong focus in recent years. Under the background of global financial crisis, China’s reform of economic and banking system, Study on the factors affecting bank executive compensation has an important significance.This paper conduct empirical analysis using samples from China’s listed commercial banks2005-2008annual report data based on summarizing the domestic and foreign research literature and analyzing system background of China’s commercial banking executive compensation. The results showed state-owned holdings have negative impact on China’s commercial banks executive compensation, and the largest shareholder’s holdings have positive impact on Executive compensation. The ratio of independent director, Roa and non-performing loans ratio are not relative to China’s Commercial banks executive compensation. state-owned holdings, the largest shareholder’s holdings and the ratio of independent director are not relative to the sensitivity of China’s commercial banks executives’ pay to performance.Finally, this paper proposes that for the state-owned commercial banks the government should reduce restrictions on executive compensation system, for all commercial banks, should strengthen supervision on executive compensation system, and improve corporate governance system.