Empirical Research On Compensation System Viewing From The Event Of Astronomical Salaries

According to optimal contract theory,the contract is the best when executive compensation linked up with corporate performance.But it still does not solve the agency problem on the basis of managerial power theory,and even the stickiness of executive compensation appears.In China,the chaos of executive compensation in the state-owned listed companies has occurred since then,and it is often seen that corporate huge losses coexist with high executive compensation.Faced with the chaos,the government has issued a series of policies on reform of the executive compensation system in state-owned companies since the establishment of the SASAC,and the event of astronomical salaries could be regard as a bifurcation point of the reform on compensation system by SASAC.By comparison with the compensation policies before and after the event of astronomical salaries,this article studies if or not the policies could effectively suppress the compensation stickiness.In this article,the methods include theoretical analysis and empirical analysis.First we analyze the reason of existence of compensation stickiness by principal-agent theory,optimal contract theory,managerial power theory and human capital theory.Secondly,we arrange the progress of reform on executive compensation system in state-owned companies,and analyze the situation of state-owned listed company executive compensation in the use of 2006-2013 data.Thirdly,we empirically analyze and compare the effectiveness of two stages of the compensation reform,which the first stage is 2006-2008 and the next stage is 2009-2012.Finally,we sum up the main conclusion of this article and make recommendations,while noting the limitations of this article.The main conclusions are as follows:on the one hand,the series of 2006-2008 compensation system reform became a legal basis for the compensation stickiness;on the other hand,the 2009-2012 compensation system reform is more rigid than before,and the problem of stickiness of executives compensation in 2013 can be alleviated coupled with slowing economic growth and the continued attention of the public and the media.Compared with 2006-2008,2009-2012 compensation system reform is more effective in limiting the state-owned listed companies' executive compensation stickiness.Accordingly,we propose the following suggestions:(1)further improve the formation system of state-owned companies' executive compensation;(2)raise the state-owned companies'executive compensation system to the level of law;(3)improve the disclosure system of state-owned companies' executive compensation;(4)issue more targeted compensation policies at financial industry.