An Empirical Research On The System Of Ownership、Economic Value Added And The Executive Compensation

The executive compensation is an important part of corporate governance structure that public concerned. The view is that some executives’compensation is too high to damage the interests of shareholders.The best way to effectively guide executives is encourage. In many incentive policies, to develop a reasonable executive compensation is a best priority. Establish a scientific and rational system of executive compensation, give executives an effective incentive, can guide executives’ behavior be in consist with the interests of the company’s purpose. There is no doubt that if executive compensation has not been properly addressed. It will not only threat the company’s governance structure, but also affect the country’s economy healthy and development orderly.Since the financial crisis happened in 2008, the remuneration of senior executives issues abound in our country. To be better adapt to the economic development. In 2009, the SASAC issued the " Measures about the central enterprises’responsible performance evaluation," formally implemented from January 1,2010. Since then, the SASAC official fully implementation on the value added assessment system of central enterprises economic, which greatly promoting China’s economic value. Unlike other economic value added measures, economic value added measure the corporate profits in all capital costs. Also it is a very comprehensive financial management framework. In other word, economic value added can also be used in business for high-tube incentive compensation policies.In the process on the executives’compensation and incentives of domestic listed companies have successful experiences and failures. How to use economic value added in different ownership enterprises, and what impact it will produce on the executive compensation is the key issues going to in this paper.This paper is consists of five chapters on the ownership, economic value added and the executive compensation. Based on the theoretical analysis, this paper will seek reasonable compensation system to specification the economic value added for corporate executives. In refer to a large number of documents, it is also use the empirical research methods selected to analyze the data from 2010-2012 argumentation. Then show the results that the economy added value and executive compensation has a significant positive correlation. And when the nature of ownership is state, this positive correlation is more significant. This shows that, since 2009, the SASAC introduced economic value added as a measure of corporate performance and executive compensation. The executives in the state-owned enterprises have played a positive role in guiding.