Study On Factors Influencing Executive Compensation Of Chinese Listed Commercial Banks

The 2008 global financial crisis resulted in executive pay as problems, people from all over the world are extremely concerned about it.whether the United States of scandal about executives huge pay or the rapid growth of China executive compensation and the salary limitlet the public banking executives calls into question the rationality of the high pay. Many scholars will also study the center of the bank,the study about salary incentive of bank executives.As the deepening of the marketization,the senior executive compensation is increasing in this field. At present, our country banking executive compensation makes other entity enterprise executives nearly as well, especially joint-stock commercial bank executives, the salary is very generous.The pay gap of different bank executive is becoming more and more significant, minsheng bank, pingan bank executive compensation in contrast to the large state-owned commercial Banks, on average the 2 million annual salary.In view of the Banking executives’growing high salary, relevant departments issued regulations of the state,regulating strictly and controlling the commercial bank executive compensation.Based on the above background, browse through the existing achievements of scholars both at home and abroad, this paper selected listed Banks, through empirical analysis, reveals the influence factors of China’s listed bank executive pay, by regression analysis and the combination of the above research, to further understand the compensation status of banking executives to build the foundation of further research, and to provide suggestions for reasonable compensation system.This article is divided into six parts:the first part mainly described the research background and significance,reviewing the relevant research literature at home and abroad, and points out the methods, the innovation points and deficiencies. The second part gives a definition of involved concepts. At the same time, discusses the typical principal-agent theory, and the theory of the manager.The third part reviews the developing process of the salary system of China’s banking industry, and then study the present stage of listed commercial bank executive compensation condition. Find executive pay difference in the form of graphs and charts, found problems including the gap of different types of bank executives paid is large, the proportion of bank executives shareholding is low, compensation management is given cash and lack of effective long-term incentive measures. The fourth part describes the foreign commercial bank executives incentive measures and summarize characteristics of executive compensation system for the construction of our country commercial bank executive compensation incentive mechanism. Fifth part, choose the 14 listed commercial Banks in our country as the analysis object, proposed assumptions about the influence factors of commercial bank executive compensation and analysis the effection of factors, understanding on the construction of our country banking executives salary incentive, and provide the data support of the construction of salary system in our country. Sixth part according to the article research and the final results of the empirical analysis,put forward relevant suggestions about establishing our bank executives compensation system, in order to promote the development of the domestic banking industry.Finally,this article are summarized.