Study Of Management And Control On Senior Executive Compensation Of The State Holding Listed Company

Since the adoption of the reform and open policy, state holding listed company hasdeveloped very well and has become a pillar of strength Chinese country economic andsocial development. State holding listed company is means of the government’s participationin economic and even interferes based on the market economy. The current situation of thedevelopment of state holding listed company make their employee compensation accruing,especially senior executive compensation growing up too fast, even appearing executivecompensation increasing with the profits of the company reducing. Along with themedia exposure, executive compensation issue has become the focus of attention of thesociety. Government departments in this circumstance have taken some measures to resolvethe problem, but still can not achieve the symptoms, such as the salary limit. However, thesalary limit is just a transitional reform measures. All sorts of problems the governmentneeds to fundamentally solve the state holding listed company executive compensation.This paper also uses a variety of research methods of literature, empirical researchmethod and comprehensive induction to research management control the state holdinglisted executive compensation. In this paper, the analysis of the present situation on executivecompensation has conducted the empirical study, choosing China76state holding listedcompanies as a research sample. The contents of research are the longitudinal comparison ofexecutive compensation itself, the influencing factors of executive compensation and therelationship between executive compensation and corporate performance under differentconditions. The first is the comparison of simple data. the latter two are grouped in theapplication of different control variables, applying descriptive statistical methods to studythe current of executives compensation, and then use the linear regression model tostudy. This paper use the statistical software SPSS as a tool of analysis to study the status ofthe state holding listed company executive compensation on its influence factors andperformance sensitivity with corporate performance.According to the empirical research conclusion, this paper establishs a set of scientificand reasonable management control system of the state holding listed company executivecompensation. According to the process of the management and control, the systemof division of management control is established for the beforehand control, intermediatecontrol and afterwards control. The beforehand control refers to the need to do beforethe control system for the implementation of the preparatory work, the main content is todevelop the system guarantee and organization guarantee, compensation goal andcompensation standard. The matter of control refers to the control system should do in theprocess of the implementation of the content, including information feedback, managementreporting, deviation analysis, performance evaluation and incentive. After control refers tothe summary and evaluation of the implementation of the control system after the implementation, and then update the system. In the whole process, implement strategy isneed. The strategy is mainly carried on the company security work, the formulation and cashof compensation, supervisory management, establishment of economy environment andinformation disclosure out of company.