The Research On Legal Regulation Of The Listed Corporations’Executive Compensation In China

In the presence of corporation’s ownership and management right being separated,executive compensation is adopted to corporation governance system as a way to solve the problem of agency costs.It aims at combining executive’s benefit and shareholder’s benefit tightly by providing executives appropriate incentives.However, the exorbitant compensations appear frequently.Executive compensation mechanism must be completed as soon as possible.There are many deficiencies about executive compensation system of corporation, so building a systematic and completed mechanism about executive compensation system of corporation in China is in urgent.In the paper,the author analyses issues about executive compensation of corporation with various methods under the foundation of admitting law’s function.In order to build legal regulation of executive compensation in China, the author refers some successful experience in America.The paper is divided into four parts.The first part is about the theory explanation of executive compensation’s legal regulation.The author explains some concepts about executive compensation and this part is the theory foundation of other parts.The second part researches the status and its causes of executive compensation system in China.Analysing the problems in determination system,salary structure,salary information disclosure and judicial remedy in China.The third part researches the method to restrict executive compensation of corporation in both aspects of direct law restriction and judicial remedy in America. Through studying the legal reforms in American, the author gets some references about the legal regulation of executive compensation in China.The fourth part is some proposals about how to improve the legal regulation of executive compensation in China.In the foundation of referring American advanced experience,the author proposes some suggestions about the legal regulation of executive compensation in China in aspects of salary determination system, salary structure,salary information disclosure and judicial remedy to make corporation’s interests maximized.