On Legal Regulation Of Executive Compensation Of Chinese Listing Corporation

The separation of proprietary rights and management power is the most important feature of the modern enterprise system, and the legal relationship between the owner and the operator of the company is principal-agent relationship. However, since the pursuing goal between the owners and the operators is not entirely consistent, principal-agent problems have arisen, and the agency cost has been follow as well. The salary system is established to eliminate the contradiction between the owner and the operator, which will also ensure the operators to maximize the value of the company in the pursuit of their own interests. Therefore, establishing a set of perfect compensation system will effectively stimulate and restrict the operators of enterprise, which is conducive to the healthy development of the enterprises and will maintain the prosperity and stability of the whole market economy.However, the governance structure of China's listing Corporation is not perfect in practice. These problems are mainly as follows: the dominance, serious internal control, inadequate disclosure of information, the weak correlation between enterprises' achievement and operators' achievement, executive compensation has deviated from the original. Therefore, we must regulate the listing corporation executive compensation, and further optimize the structure of corporate governance.The research object of this paper is the legal regulation of executive compensation of Chinese listing Corporation. In this paper, the author used empirical comparative analysis research method, literature method and survey method. The logical order of the article can be divided into three parts: proposed the questions, analysis questions, solve the problems. This thesis consists of four parts. The first part defines the basic concepts, expounds three basic theory, and then analyzes the motivations of regulating the executive pay and the goals of legal regulation. The second part focuses on the analysis of China's listing Corporation executive compensation problems. And then analyzes the weak correlation between enterprises' achievement and operators' achievement, unreasonable salary structure, imperfect decision mechanism, inadequate disclosure of information, and further analysis of the causes of these problems. The third part mainly introduces the foreign experience of compensation regulation, especially USA, who possesses developed market economy, and summed up the trend of foreign regulation and its enlightenment to China. The fourth part put forward the corresponding improvement suggestions according to the above analysis, including the proposed measures about salary determination mechanism, information disclosure, salary structure, government supervision and judicial relief. It mainly introduces the compensation recovery system and shareholder derivative litigation.As the author's point of view, to solve the problems of executive compensation, we should adhere to the principle of moderation, combination the legal regulation with market regulation. And then we should give full play to the salary system to encourage and restrain senior executive. At last, we should make the interests of the company shareholders and executives agreed, which will finally effectively solve the problems of executive compensation.