Research On The Relationship Between Executive Compensation, Corporate Performance And Social Responsibility

Executives refers to the decision-makers of the enterprise, that is involved in making enterprise development planning, action everything related to business activities such as planners, they hold important position in the management, responsible for enterprise management, grasp the important information of the enterprise, mainly including managers, deputy manager and financial officers, the listed company director other personnel prescribed by the secretary and the company’s articles of association. Executives is the core of enterprise operation, the executor of the target is to complete the board of directors. A good top managers should not only have excellent business ability, but also need to have a certain financial level. Performance of individuals in a particular period of time can be descriptive job behavior and predictable results, and combining with the quality and ability of individuals in the past work, to guide its improved, which is expected to person in a specific future time effectiveness and efficiency of what can be achieved and combined. Only performance and conduct excellent personnel can get PuSheng and reuse. Relative performance is an important determinant of executives decided to pay; The executive compensation and corporate performance, can arouse the enthusiasm of executive management;Enterprises should attach importance to and strengthen the contribution to the country’s social responsibility. The easier because the greater the company’s contribution to the national support from the state, and provide a better business environment, conducive to the promotion enterprise’s performance, the country is always more focus on the support of "large tax". On the contrary, if the enterprise fails to perform its statutory duty to the country to contribute, extremely easy punished by the law of the state, while the bad operating environment will increase the operating costs of enterprises, these will lead to the loss of the economic interests of the enterprise, and thus the performance of the enterprise. In addition, because the enterprise to the country tax as the main source of national finance income, enterprise to perform in the country’s legal responsibility for the function of the government play a better service for the enterprise, more effectively play the role of macroeconomic regulation and control, to create a market environment for enterprise development. Related literature at home and abroad are using theoretical analysis and the generalized empirical method to research a lot, also from different angles some analysis are made to narrow the empirical methods:how to reasonably determine the enterprise executive pay levels? How to establish long-term effective incentive and constraint mechanism of enterprise executives? How to push forward enterprise executive compensation system reform? How to regulate the enterprise executive compensation system of treatment? How can enterprise performance or as the basis of executive pay sure? Executive compensation and corporate performance and whether there is relationship between corporate social responsibility? And so on, has become the whole social attention and unavoidable problem now.Narrow empirical research methods, this paper chooses enterprise actual data in recent years, exploring the inner relationship between executive compensation and corporate performance; Executive compensation and the correlation between social responsibility and enterprise performance, aimed at executive compensation for the enterprise reform, and provide reference for reasonable enterprise executive pay. In this paper, the results of the study:(1) the west of the listed company, between executive compensation and corporate performance significantly positive correlation. In the state-owned enterprises exist significantly correlation between executive compensation and corporate performance is lower than non-state-owned enterprises. (2) the executive compensation and corporate performance and significantly positive correlation between the social responsibility. The fitting degree between the state-owned enterprises is higher than the non-state-owned enterprises, the reason is that the state-owned enterprise of national income and one of the important source of national revenue, social responsibility fulfillment degree related to the executives and corporate performance. Generally speaking, the scale of the enterprise is also the important factors that affect the correlation between them.