The Empirical Research On The Relationship Of Executive Compensation Of Listed Company And Performance Of Enterprise

Senior executives are relatively rare talents in modern company, the stimulation system and supervising system of senior executives by using compensation incentives is a hot issue in the research of modern enterprise management. The enterprise must establish and improve relevant executive compensation incentive mechanism, so that senior executives can have full use of their faculties and work for improving enterprise performance. Therefore how to establish an effective executive compensation incentive mechanism is an important issue which modern enterprises need to research. Effective executive compensation incentive mechanism has great significance to the development of the modern enterprises.The added value belongs to the category of value-added accounting, in the distribution of added value, the stakeholder is composed of senior executives, common workers, government, creditor, shareholder, enterprise and so on. In this article, the ratio of executives monetary compensation and added value is defined as the executive income rate, it will reflect the compensation incentive situation of senior executives with executives monetary compensation and the proportion of executives shareholding. In terms of enterprise performance indicators, ROE is on behalf of profitability ability, TATO is on behalf of management ability, asset-liability ratio is on behalf of debt-paying ability. At the same time, according to the ownership property of listed companies, listed companies in China can be divided into state-owned and non-state-owned. According to the difference of the hierarchy of government control, state-owned listed companies can be divided into the central state-owned and local state-owned. According to the difference of industry competition pattern, listed companies in China can be divided into low competition form and high competition form.The result of the research is that, in the whole sample, there is a significant negative correlation relationship between executives income rate and enterprise performance. There is a significant positive correlation relationship between executives monetary compensation and enterprise performance. There is a significant negative correlation relationship between the proportion of executives shareholding and enterprise performance. Among these, the conclusion of enterprises of different ownership property is different and the conclusion of enterprises of industry in the different form of competition is also different. So, executive compensation incentive should consider not only monetary compensation and ownership, but also the ratio of executives monetary compensation and added value. In the end, we put forward some suggestions to perfect the executive compensation incentive on the basis of the conclusion.