The Relationship Study Between Executive Pay And Corporate Performance Of Chinese Companies Listed On GEM

China GEM was established in October 2009,It has the characteristics of high-growth, high-risk, high volatility,With the establishment and growth of the GEM,There is a growing concern of the performance of companies listed on GEM.In modern enterprises,Company executives personal interests are not entirely consistent with corporate goals because of the agency relationship,Therefore,Linking the executive pay and corporate performance and establishing a reasonable salary incentives has great significance of improving the situation.At present, research on the relationship between executive pay and corporate performance is mainly targeted at the motherboard market, The conclusion does not necessarily apply to the GEM.This paper studies the relationship between GEM listed company executive pay and corporate performance to provide a theoretical basis to improve pay incentives GEM listed companies and promote the building of enterprise growth mechanism.This has a positive theoretical and practical significance in improving and perfecting the incentive compensation of companies listed on GEM.This paper introduces the domestic and foreign scholars’ relevant research,It combines the method of theoretical analysis and empirical analysis,From the introduction of the theoretical basis to the relevant empirical model designing,take 187 companies listed on GEM as sample and use the panel data from 2010 to 2013,set executive compensation as the independent variable,corporate performance as the dependent variable,to build the basic model analyzing the relationship between executive compensation and corporate performance,set executives shareholding proportion, firm size, debt ratio, total asset growth as control variables to conduct a regression analysis.The analysis shows corporate performance and executive pay correlation is not significant,executives shareholding proportion and executive showed a significant positive correlation within 10% confidence interval;there was a significant positive correlation between corporate performance and the size of the company;Business performance and asset-liability ratio showed a significant negative correlation.This paper also analyzes the relationship between executive pay and corporate performance of software and information industry and manufacturing. Discussion empirical research conclusions from the perspective of different industries.Based on empirical research conclusion,we made several recommendations: Improve the pay incentives to improve the pay "rigid" features, focusing on the combination of long-term incentives and short-term incentives;Improve corporate governance and oversight mechanisms to ensure the fairness and reliability of information;Improve the management of the company managers, improve the core competitiveness of enterprises.