The Relationship Between Public Corporate Donation And Executive Compensation

Company executive pay is the current hot and difficult issues of domestic and foreign corporate governance. About the "astronomical salaries," reports often hit the newspapers, causing public discontent. Especially state-owned enterprises executive pay and the resulting social problems caused great concern in the community. After the financial crisis, European governments preclude taking a series of measures to limit salary. Of course, in order to strengthen the "executive compensation" reasonable, get public recognition, executives will take the initiative to undertake the social responsibility- Corporate donations.This paper argues that, as a result of holding executives of listed companies is much higher than the social average salary, which is facing pressure from public opinion. Management of listed companies have in order to alleviate the impact of these media, they will not be willing to reduce their pay level, but to take positive donation by the company worked to show the company’s "social citizenship" status, active commitment to social responsibility, It is reasonable to provide salaries for holding strong social basis. Implementation of the company, the more foreign donations, showed its commitment to a more social responsibility, to gain a certain amount of social support, more conducive to executives seeking higher pay. Therefore, executives of listed companies pay levels and the company wishes to donate, there is a positive correlation between levels. Moreover, the long-standing state executive pay has been a currency restrictions, which makes the job of this invisible consumer incentives become an important executive incentives, their impact should not be overlooked.In this paper, from 2006 to 2013 between China’s A-share listed companies as samples for empirical research, the study found company executives and the company does pay levels monetary donation wishes levels showed a positive correlation. Along this line of thought, the government, companies and other economic decisions when economies to fully consider this effect.