Top Management Compensation Gap And Company Performance

In recent years, the study of executive compensation incentive is popular in academia.however, existing research mainly devotes to the research to the influential factors of executivecompensation, the level of executive compensation internal and corporate performancecorrelation research, study on the structure of executive compensation internal and corporateperformance correlation. Since the1980s, business and academia began to focus on therelationship between the compensation gap of the CEO and Other executives on companyperformance. At present the more controversial theories about compensation gap is thetournament theory and behavior theory. Tournament theory and behavior theory holds theopposite view. Tournament theory suggests that a large compensation gap between CEO andcompany Other executives leads to higher company performance; behavioral theory states thathigher performance may be achieved with a small compensation gap between CEO and Otherexecutives. The paper argues that there is an interval effect in the pay gap. Within a certain range,the tournament theory can explain the relationship between compensation gap of CEO andcompany Other executives and corporate performance, but The applicability of tournamenttheory in company affected by the CEO of gender. This paper mainly discusses whether theenterprise when managed by a male or a female CEO follow the tournament theory, and tries touse data to prove that the relationship between compensation gap of CEO and company Otherexecutives and corporate performance Present a inverted "U". In addition, this paper alsodiscusses whether there are differences between a female or male CEO’s ability to createenterprise performance. This paper argues that the individual ability of female CEO is notweaker than male, and female also can bring a better performance as male, and it is verifiedthrough empirical research.In the paper, the research perspective is relatively new, and found that enterprises managedby female CEO have a better performance than enterprises managed by male CEO throughdouble samples T test. The paper provides the empirical data to support the tournament theoryand, the study found that whether the male-dominated world of enterprise or with womendominate the tournament theory are applicable, at the same time there is an interval effect incompensation gap of CEO and company Other executives, and when CEO with different gendersthis interval size is different.