The Relationship Between Executive Compensation And Corporate Performance In Information Technology Industry

The Information technology industry is an advanced technology industry that our country develop in priority at present.Information technology has already been used in all aspects in society.Information technology industry is knowledge concentrated industry,and human capital plays an important role in enterprise development.As the main human capital,senior executives of an company have their shoulders for choice,preparation and implementation of all kinds of strategies,which has a significant effect on enterprise development.So far,it is not perfect enough of salary incentive mechanism in information technology industry in China,which constrains good development of information technology to some extent.As a result,it is meaningful to analyze the relation between senior salary in information technology industry and enterprise performance and study the main effect element of senior salary in information technology industry.At first,the related public articles home and abroad are made clear in this paper.At present,the attention of senior salary effect study from academic community is paid mainly to enterprise internal factor.Because there is no agreement on the definition of senior executive,performance etc,In addition,different scholars have different study methods,there is some difference on the conclusions.Based on predecessors' study,this paper offers 9 assumptions about the relation between senior executives and each targets and uses the data from listed companies in information technology industry with the help of SPSS19.0 software to do statics and regression analysis.Firstly,simple descriptive statistics method is adopted to analyze sample company data,finding that it can not do multiple linear regression directly.As a result,company scale and asset-liability ratio two guideposts which can show available fund amount and fund structure are used to do cluster analysis.The sample companies are divided into five categories at last.Then make nonlinear regression and multiple linear regression for senior executive salary and each target individually in the sample companies.The conclusions made by empirical analysis as follows: under the control factor of company scale,U type curve linear relation is showed between senior executives in information technology industry and company performance.Capital stock structure and senior executive average education are important effect factors for senior executive salary incentive.It is not obvious of the stock ownership incentive for senior executive.The negative effect from board of supervisors to executive compensation is not obvious neither.Based on empirical analysis,the relation between executive compensation and company performance in information technology industry and the main effect factors of executive salary are concluded at the end of this paper.In addition,some suggestions are provided based on senior executive compensation system in information technology industry in China now.