The Effect Of The Pay Gap Between Executives And Ordinary Employees For The Listed Tourism Companies’ Performance

Human resource is the first resource. It has an important decisive role for the sustainable development of enterprises. A set of reasonable salary system can attract, motivate, retain and develop human resources effectively. Many previous research on the relationship between pay gap of executives and corporate performance, but rarely studied in different industry and different areas. In addition, they seldom research the pay gap between executives and ordinary employees, and it is how to affect companies’ performance. In fact, the pay gap between executives and ordinary employees will have an important impact on the general staff of the emotion, attitude and work performance. With China’s rapid economic development, tourism has become a pillar industry in the development of the national economy. So this article listed tourism companies as research samples, in order to explore the tourism listed company executives and ordinary employees pay gap is reasonable or unreasonable. And the pay gap is how to affect enterprise performance. Through these studies, I would like to put forward valuable advice.Firstly, by reviewing the domestic and foreign research about the pay gap, then put forward the emphasis and direction in this paper what we need to explore. Define the key concepts. At the same time, this article puts forward the relevant theories of compensation and compensation gap of related theory, and as the theoretical support of this study. Secondly, this article uses tourism listed companies’ data in 2004-2013, analyzes the executives and staff members of the status quo of the pay, pay structure, pay gap and the enterprise performance. Found that within the tourism listed company executives and ordinary employees pay levels is showed a trend of rising year by year, and the pay gap is expanded year by year, but the trend of the company operating performance is different. Again, this article selects the ROA to measure the company’s performance. After setting and explanatory variable, the research hypothesis is proposed, and the corresponding equation model is designed. Then regression analysis was conducted by using SPSS software. Found that, The pay gap between the them effects on business performance is a inverted U shaped. Within the growth good companies, the pay gap between them have stronger positive effect on the company’s performance. In the coastal area, the pay gap between them have more strongly positive role. Finally, on the basis of the theory and empirical analysis, this article puts forward optimization suggestion of the pay gap between executives and ordinary employees. Including the optimization of the pay gap management system and its guarantee measures.