Study On The Correlation Of Senior Executive Compensation And Company Performance

A long time,although the scholars has been the executive pay and company performance correlation as a hot issue,but so far not yet formed a unified conclusion.Two related studies to establish a reasonable and effective executive compensation,and improve the company’s level of performance.The IT industry is driving our country and local economic development in an emerging industry.At present,the lack of a good leader has become an important factor restricting China’s IT company growth and development,compared with developed countries,China’s information technology company executive compensation mechanisms exist outdated ideas,the mechanism is not flexible measures the use shall not be deemed insufficient,effectiveness,and restraint mechanism is not perfect and many other issues,thus making the actual capacity of the executives not been fully exploited,thus affecting the performance of the company.Therefore,the relationship between executive pay and corporate performance of listed companies on China’s IT research has great significance.To better understand the situation of China’s IT industry executives of listed companies pay incentives,to investigate the correlation between executive pay and company performance relationship,this paper selects the 2008-2010 listed in Shanghai and Shenzhen Stock Exchange A-share listed companies of the IT industry as a study from the website of the official website of the China Securities Regulatory Commission,CSMAR database,giant tidal information database for data collection,end 65 of sample data for research.Analytical articles research background,purpose and meaning,methods and ideas based on relevant literature summarized review of the principal-agent theory,the theory of human capital theory,and pay for performance theory as the theoretical support of this article.Descriptive statistical analysis of executive pay and corporate performance of listed companies on China’s IT,focusing on the characteristics of executive compensation,corporate performance,managerial ownership and a descriptive analysis of the assumptions laid the foundation for later.Study design,according to previous analysis,selected samples to determine the relevant indicators related to executive pay and corporate performance of listed companies on China’s IT industry and the sensitivity of the empirical analysis,and finally by drawing on the basis of relevant experience at home and abroad proposed in the IT industry executive compensation mechanism should be established based on the company’s performance,so that the company performance and executive self-interest combined.The whole chapter the main conclusions are:(1)IT industry companies executive pay and performance on behalf of the company,the net return on assets and earnings per share indicators there is a significant positive correlation;(2)of the IT industry executives of listed companies pay significantly positively correlated with company size;(3)of listed companies of the IT industry executive compensation and ownership concentration is negatively correlated;(4)IT industry executives of listed companies pay and the company’s capital structure is negatively correlated;(5)IT industry companies company performance and executive compensation there is a strong sensitivity.The article may be of innovation:(1)articles for the IT industry companies,unlike all the listed companies in the past studies,research findings more targeted,persuasive.(2)on the basis of the traditional variables,the use of some new variables,such as executives of age,the executive part-time,two rank-one.(3)articles not only studied the correlation between executive pay and company performance,the sensitivity of company performance and executive pay,to make the study more complete,more fully.Finally,the lack of research is mainly reflected in two aspects:one is the reliability of data,a research direction of the unidirectional Specifically:the main worries from this article data from the Guo tai Jun an database,missing data and errors,as well as listed companies to disclose information when reporting data errors on the data reliability.Research unidirectional this paper focuses on executive pay and corporate performance in the IT industry,not with reference to other industries.