Layer Force Of China’s Listed Companies Management Rights And Executive Pay Gap

As the event that the salary is formulated by the senior themselves is frequentlyexposed by the media in recent years, the Remuneration gap of senior executives inchina has become a hot topic attracting the attention of the mass and media. TheRemuneration gap of senior executives is no longer a new topic abroad, and therelevant study is increasing at home. The study on the pay gap of the seniorexecutive is mainly about the relationship between the pay gap and corporateperformance At home and abroad,while the power theory of the Managementhierarchy on is less used to study the impact on executive pay gap in the literature.Therefore, the paper is mainly aimed at testing whether and how much theManagement hierarchy power of China’s listed companies can influence theexecutive pay gap. In the hope of the result can be significant to the future reform ofthe remuneration system of the listed companies in China.Firstly, there is a inductive analysis of the concepts involved in the presentstudy, theoretical and a review of existing domestic and foreign literature, and thenposing a research perspective–a Methods based on the theory of the managementhierarchy power and the pay gap. According to the empirical study, the paper showsthat As the reform of market-oriented, pay-for-performance system and the equityallocation is nearly completed, the pay gap among corporate executives isincreasingly widening, on the one hand. On the other hand, there exists a strikingrelationship between the pay gap among the senior executives and the three indicesof the management authority,which manifest an positive with senior managementterm and part-time job and negative correlation with ownership concentration。According to research findings, combined with the concrete practice of China’slisted companies, this paper proposes to solve the problem of the gap betweenexecutive pay some suggestions: perfect talent competition mechanism, correctlyguide the management of power, suppression incentive compensation agencyproblems, enhance shareholder regulatory standards and improve the compensationinformation disclosure, strengthen the supervision of executive compensation, improving property market, product market, capital market and professionalmanagers markets, improve corporate governance.