The Research About The Factors Affecting Senior Executive Compensation Of Listed Company

With continuous development of technology,human being already has entered an era of information technology.Since information technology was introduced,the way of produce and live have changed significantly.Even more,it has become the leading industry to improving internal economic conditions and bears the burden of economic development.As commander of company,Executive Compensation has always been the concern of both the academic and practice.The owner commissioned company on behalf of the management,forming a relationship of principal-agent,but the two goals are inconsistent with the existence of contradictions.fortunately,the organization can effectively solve the problem through the design and implementation of an effective compensation program.The related research based on the carding domestic achievements of the theory of exec utive pay.Focusing on the deficiency of domestic and foreign research results and limitatio ns.The system characteristics of the information technology industry,information technolo gy industry present situation and the impact on executive pay.Factors of executive compen sation by empirical analysis,put forward a sound system of suggestions to executive comp ensation.This sample of the article is A-shared listed companies in Shanghai and Shenzhen of the domestic information technology industry from 2012 to 2014.At first,the paper theoretically analyses the factors affecting executive compensation of listed companies in the information technology industry,provides the underlying assumptions and researches on the variable--company performance,company size,the size of board of director,the proportion of independent director,the proportion of stock shares senior executives held,location of company,age of senior executives and the educational level of senior executives.At last,the conclusions below are I discovered by applying data analysis software IBM SPSS.1.Company performance,company size and the location of company have positive correlations with the level of executives' compensation which means executives who work at better bigger company,the company is located at more economy-developed area,earn more money.2.The Board of director's size and the proportion of independent-director have no effect on the level of executives' remuneration,which means the internal public company need improve on company's structure.3.The proportion of stock shares executives held has weak negative correlation with the level of executives' remuneration.The result shows that the internal information technology public companies have lots of space on share incentive mechanism.The companies should increase the proportion of stock shares executives held.4.As to personal character factors,age of senior executives has significant negative correlation with the level of executives' remuneration.On the contrary,the educational level has significant positive correlation with the level of executives' remuneration.Therefore,the younger senior executives with higher educational degree are easier to earn higher remuneration.