Study On The Compensation Gap Of Executives And Employee And The Corporate Performance In Financial Companies Listed

In recent years, the phenomenon on the "sky-high annual salary" of executive pay appeared frequently in financial industry, and the per capital annual salary is breathtaking, lead to growing pay gap between executives and employees. Financial industry pay for senior management team, in comparison with average total compensation and non-financial in executive pay list of the top 10, six called financial industry executives. Many financial companies in 2010 net profit gains, compensation is greatly increased. In the financial industry, the insurance industry difference between executive compensation and employee’s biggest, followed by the securities industry, the highest and lowest difference is bigger. As a result, the financial company listed in this paper, the theory and empirical study, providing the compensation management of China’s financial industry scheme, for in addition to financial companies in other industries, this undoubtedly give compensation loopholes in management mechanism of the company now.This article summarized the domestic and foreign scholars on the influence factors of compensation gap, salary gap affects corporate performance research of literature, in combination with the principal-agent theory, maslow’s demand theory, the tournament theory, and the theory of social comparison and comprehensive analysis of the basic theory system on the basis of the analysis of the pay gap impact on corporate performance mechanism, points out that executives- employee compensation gap impact on corporate performance requires a combination of different holding form, make concrete analysis to specific industry.The financial company listed in this paper as the research object, first of all, from financial executives- the gap of employee compensation and corporate performance relationship, different holding form, under the particular financial internal industry segment executives the gap of employee compensation and corporate performance relationship of the three perspective, select asset-liability ratio and the proportion of independent directors and so on four indicators as control variables, return on equity index as the dependent variable, salary gap index for the independent variables respectively construct different compensation and corporate performance relationship model. Secondly, divide the financial sector, state-owned holding sub-sample, the whole samples for non-state-firms sub-sample, bank finance sub-sample, the non-bank financial sector samples, from 2009 to 2014 as the time window, according to the established econometric model, using statistical software stata12 and excel software for data processing and do descriptive statistics and regression analysis. Through empirical research, it can be conclude that the financial industry executives and employees for differences between the impact on corporate performance will disappear with the enlargement of the income gap; Compared with the state-controlled financial sector, non-state-owned holding financial executives- employee compensation gap are more significant influence on the performance of the company, should be the government’s supervision and management to non-state-owned financial enterprise; Bank financial executives- employee compensation gap more significant influence on the performance of the company.Finally, according to finance current salary gap, from the compensation system, performance appraisal system, supervision and restraint mechanism, information disclosure system, the country pay policy puts forward five levels of compensation management advice, to improve the compensation system of science degrees, the balance of pay and performance, the restriction of compensation management and salary information transparency, the level of compensation fairness. This article also elaborated the deficiency of research and the future outlook.