Research Of Relationship Between Salary Gap And Enterprise Performance

As a compensation for employees’ effort, Salary is one of the effective incentives to enhance the enthusiasm of the staff. It also has an important influence on improvin g corporate performance. However,compensation difference has changed this incentiv e.And public society has began to focus on this phenomenon.However,it is a pity that existing studies paid more attention to compensation difference of executives and top management team’s pay, and seldom focused on compensation difference between to p management team and employees except top executives.Meanwhile,during the empi rical analysis,scholars mainly use the very same year’s date of compensation differenc e and the performance indicators of the company,without considering that compensati on difference also has an lag influence on workers.This study is based on the main board listed 1134 companies’ data(excluding financial industry),including compensation difference data from 2009 to 2013,and perfo rmance indicators data from 2010 to 2014.Meanwhile this study put the compensation difference of executives and top management team’s pay and compensation differenc e between top management team and employees into consideration in the same time.C ombined with the company size, final control properties and technical complexity,this paper shows that the correlation of the compensation difference and corporate perform ance.The following conclusions are: First, the internal executive pay gap, executivesemployees pay gap are positively correlated with corporate performance; second, the nature of the ultimate controller of listed companies and executive’s pay gap internal interaction term negative correlation with performance; third, non-interaction terms and performance of state-owned listed companies technical complexity and the pay gap positive correlation; and the interaction term with company size and performance pay gap does not reflect the significant relationship. Above findings show that, in general, formed between the inner and senior executives and employees must pay gap will help improve corporate performance; but in the state-owned listed companies, incentive pay gap on performance will be impaired; non-state listed companies, technical complexity can promote the enhanced incentive pay gap on performance.Based on the conclusions of this paper proposes the use of appropriate incentive pay gap on corporate performance; the appropriate state-owned listed companies to narrow the pay gap between executives inside; strengthen non-state-owned listed company’s technical complexity; strengthen the technical capacity of state-owned listed companies and the level of compensation relevance of policy recommendations.