Empirical Research On Influence Factors Of Executive Compensation In Urban Public Utility Industries Listed Companies

The urban public utilities industries in China are not only the means ofgovernment intervention in economy, but also the means of government involvementin economy, they aim to consolidate the economic base of socialist construction. Asurban public utilities industries have the characteristics of natural and administrativemonopoly, the salary of their employees is more and more the focus of the society,especially the rapid increase of senior managers’ salary. Government implements theunified salary management system to manage them, thus it breeds the seniormanagers’ substitution effects. So limitation their salary is a transitional measures inthe reformation of salary system of senior management personnel of public utilitiesindustries. In a long run, the elements deciding their salary should be fully studied,and constructing the influencing factors of the senior managers’ salary is the stickingpoint of reformation of the salary system of urban public utilities industries in China.This paper tries to improve the study of the affecting factors of senior managers’salary in China’s listed companies from the points of the selection of samplecompanies, the design of variables, the perspective of research and the method ofstatistice. Summing up domestic and foreign scholars on the basis of research and putforward suitable to China’s urban public utility companies factors affecting variables,using China’s Shanghai and Shenzhen stock market listed companies,120PublicUtility companies as a research sample, the sample companies from2010to2012,three years of data, using the descriptive statistics, Pearson correlation analysis,multiple regression method, obtained executive compensation and its influence factorsin multiple regression model.This paper argues that influencing factors of the executive compensation of listedcompanies of urban public utilities, mainly include the basic factors, corporategovernance factors, executives’ characteristic factors, external environmental factorsand the adjustment factors. According to the empirical analysis: first, the executivepay of the urban public utilities listed companies has the positive correlation of thesevariables, such as size, area, asset utilization, the size of board and CEO concurrentmanager; Second, it has negative correlation with CEO share-holding rate. Third, ithas inapparent correlation with corporate performance, the proportion of independent directors, proportion of state-owned shares, perquisite consumption, the age ofmanager.At last, based on the empirical conclusions of starting an in-depth analysis, weshould be based on the urban public utility industry’s own characteristics, to establisha sound scientific and reasonable evaluation of executive pay system.