The Correlation Research Of Relative Performance And The Remuneration Of Senior Managers

With the challenges of economic globalization continue to strengthen, the senior managers who is the company's top decision-makers have increasingly become the most important human capital. There is no doubt that effective senior managers' performance evaluation system and incentive mechanism not only helps the manager's selection, evaluation and growth, will drive long-term development of enterprise. However, the modern business environment is constantly ever-changing, its impact should not be underestimated, which led to the performance evaluation of senior managers to be accuracy of this issue. How to eliminate the impact of environmental factors on corporate performance, and thus get more accurate evaluation of the level of effort of the senior managers? If this method is available, which standard is applicable to evaluate senior managers, and to develop more effective incentive mechanism? This paper mainly researches these problems.In this paper, incentive theory and principal-agent theory as the basis of the real estate industry in Shanghai and Shenzhen listed companies as the research object, eventually filter out the 2007-2011 Annual Report of the 134 A-share listed companies, a total of 660 samples, perspective to relative performance evaluation perspective. And then select the accounting returns and growth both indicators, test whether the remuneration of the senior managers and relative performance is related in the real estate industry. The study show that:the remuneration of senior managers and the relative performance is relative, however, only when accounting return as an indicator of the relative performance is the significance better.