The Impact Of Executive Compensation To Company’s Growth

Enterprise is individual unit of national economy, and which is a carrier of the country’s economic development. The soul of an enterprise, Growth that a measure of a listed company’s operations and situation of the development is an important indicator. These reflect the company’s competitiveness and development potential, Evaluation of its growth is an important tool for the development strategy of listed companies. October 30,2009, China’s GEM has finally succeeded in opening, as an important complement to the motherboard market. The GEM has much room to grow, and growth opportunities for small and medium companies, entrepreneurial companies, high-tech company offers a broad public financing platform. GEM listed companies which have high growth potential and a high overall rating persuasive when it is listed.At the core of every decision, the company’s senior management makes business operations, timing and quality has an important influence on the development of enterprises. Therefore, executive incentive has always been a concern of economists and management scientists and research focus on.In order to research how the company’s growth is affected by the issue of executive payment, this paper chose data of Chinese companies of GEM from 2011 to 2013. Making use of regression analysis, empirical methods to research China’s GEM listed companies on executive pay and growth impact. To make China’s listed companies improve executive compensation structure and enhance the incentive effects of executive compensation based on utility maximizationThe empirical analysis in this paper shows that:GEM listed company executive pay plays a positive monetary impact on the company’s growth. On the contrary, executives per capita holdings of the total shares of the company’s growth plays a negative impact. High regression analysis accounting impact of equity incentive pay in the company’s growth to be in the tube indicates, the empirical results of the GEM is not significant.Therefore, the conclusion pointed it out that to enhance the effectiveness of the companies listed on GEM executive incentive compensation. The key is not to increase the total shares held by seniorexecutives representing companies, but a certain degree of attention to executives fixed salary, and to improve the proportion of equity incentives in executive pay. Additionally, It’s important to avoid excessive executive pay in the equity incentive caused "Certainty Effect" in the process.