The Influence Research Of Executives’ Compensation Structure On Corporate Performance In GEM Board Listed Companies

The company’s development and improvement promote the separation of ownership and control in its internal,while because of the goals and interests between the owners and executives are inconsistent that caused the motivation compatibility issue appeared gradually.How to design a reasonable incentive compensation plan becomes the focus concern of current theory and business owners.Recently,Chinese listed companies’executive pay has been further improved, but the performance has appeared uncertain phenomenon on profit and loss,which also shows the unclose relationship between executive pay and corporate performance. GEM Board listed company occupies an important position in domestic capital market since its inception in2009.But we should note the phenomenon of executives leaving are frequently occur during the development of GEM Board.There is a large number of highly qualified personnels with entrepreneurial spirit in GEM Board listed companies,and play an irreplaceable role in the development process of the enterprise,also contribute as a key factor in company’s rapid growth.The loss of a large number of executives reflects the company incentive is not perfect and will adversely affect the long-term development of enterprises.Our GEM Board listed company has characteristics with high growth and high-risk,also with a certain uniqueness relative to the main board market. While current domestic research of listed companies is focused on the main board market.The depth and breadth of research on the GEM Board market is not enough,it becomes an imminent occasion to deliver a research on it.This paper analyzes the impact of executives’compensation structure on cooperate performance in GEM Board listed company,hopes to explore an rational structure to enhance the cooperate performance.This paper based on the principal-agent theory,human capital theory and competition theory,using a combination of theoretical and empirical methods to study several effecting factors on executive pay,taking355GEM Board listed companies as samples,using the published data of Annual Report in2012,made a descriptive analysis of the current situation of executive compensation structure and corporate performance in GEM Board listed company. Through the analysis of the six aspects,which include the industry, regional,executives sholding,assets operation ability,profit ability and the enterprise growth capacity of the GEM listed compangy,Indicates that there is a big gap between executive compensation of the GEM listed companies, regional differences, weak executive incentive regulations binding,and the irrational structure of the executive paying so on.Using SPSS statistical analysis software to study the impact on corporate performance from four aspects:the average monetary compensation,the average equity ratio,the average monetary compensation gap,the average equity ratio gap,also take the correlation and multiple regression analysis.The study found that there is a significant positive correlation between corporate performance and average monetary compensation,average equity ratio,average monetary compensation gap,average equity ratio gap,company size.There is a significant negative correlation between the cooperate performance and executive number,the company’s risk.Finally,according to the research findings,some suggestions are proposed on relevant departments and GEM Board listed companies in China.GEM Board listed companies should continuously improve the internal salary incentive mechanism to combinate the short-term incentives and long-term incentives,improve the corporate governance structure and oversight mechanisms to give functions of the board full play,improve relevant laws and regulations in listed company’s executive incentive,establish an effective managers’reputation incentive mechanism,improve the transparency of information disclosure to eliminate information asymmetry problem fundamentally.This article want to study the structure of the GEM executive compensation influence on the corporate performance, and hope to find out a reasonable mode of executive compensation structure for resolve executives principal-agent problems of the GEM listed company.At the same time, this research want bo make a contribution to the reasonable structure of the GEM company executive compensation incentive mechanism and benefit distribution mechanism for the company’s long-term development and promote the healthy development of the growth enterprise market.Through the effective mobiles of the capital market and have a practice significance to realize the stability of the securities market.