Executives Sources, Salary System Design And Familiy Enterprise Inc Performance

Since reform and opening up, owned by family or business get rapid development, has become an important part of China’s private economy, according to statistics, more than90%in our country private enterprise for family enterprises. The speed of family enterprise development determines the whole of the fast development of private economy, contributing to China’s economic development has great power. In family businesses for the further development of the continuous process, there are many hidden dangers. Family business technology, capital and other resources, the management of the members of the family of limited ability, within the board of directors and board of supervisors non-existing, lead to family business operation efficiency is low, the overall performance decline, hindered the further development of family businesses. Family-based management or from the introduction of professional executive is an important topic. In this paper, by adopting the combination of normative and empirical research methods, according to the theory of agency theory, trust and management based on incentive theory as the theory, from the characteristics of the family business is different from other enterprise executives-source launches the research, attempts to explore the executive source, salary system design and the relationship between the corporate performance, trying to perfect governance structure of family business advice. In this paper, with the support of the existing literature, by using the OLS method to the following three aspects:multiple linear regression analysis listed family companies which factors will affect the proportion of professional executives; Family enterprises different sources of executive compensation system design if there is a difference; Source of executives and corporate performance relationship; Different sources of executive compensation incentive is to enhance the performance of the firm. The results show that:(1) the degree of industry competition will affect the listed family companies the proportion of professional executives, the greater the degree of competition in the industry, the proportion of professional executives is higher;(2) in family businesses, for different sources of executive compensation system design, professional executive compensation performance sensitivity is higher;(3) executives sources has a significant effect on the company’s performance, the higher the proportion of professional executives, the more beneficial to the improvement of the corporate performance;(4) the executive compensation incentive effect to the promotion of corporate performance varies by executives source, namely in the professional management company, executive compensation incentive effect on the performance of the company to make positive and more significantly, by signing a pay-more likely to improve corporate performance in performance of the contract. At the end of this article, according to the results of empirical analysis, combined with the specific situation in our country, put forward the corresponding suggestion.