Study On Member Features Of Compensation Committee,Compensation Incentive And Corporate Performance

In the people-oriented society,executives,as an important human capital,play a decisive role in the development of enterprises.Pay contract is one of the common means of executive incentive,therefore,how to effectively incentive executives has become an urgent problem.Since the financial crisis caused by the subprime mortgage crisis in 2007,governments of many countries have introduced a variety of remuneration policies.China also promulgated the "salary limit order" on September 16,2009.Since then,the study of China's pay governance issues caused further academic attention.In December 2007,the China Securities Regulatory Commission,for the first time,explicitly required listed companies to disclose "summary report on the duty performance of the Audit Committee and the Remuneration Committee under the Board of Directors" in the 2007 annual report in order to further promote China's listed companies' attention to the remuneration committee.The features of remuneration committee members have a strong diversity in different companies,and their influence on executive pay,and even corporate performance,can help strengthen corporate governance.Therefore,this paper attempts to explore how the compensation committee member characteristics influences the company's performance.The thesis also explores the role that pay incentives plays in it.Through the research,the following conclusions are obtained in this paper.First,in companies with audit-background remuneration committee members,the executive compensation level is low,the pay gap small,the fairness strong and the companyperformance has declined to a certain extent.Second,in companies with university-background remuneration committee members,the executive compensation level is high,the pay gap wide,the fairness weak and the company performance has increased to a certain extent.Third,in companies with female remuneration committee members,the executive compensation level is low,the pay gap small,the fairness strong and the company performance has declined to a certain extent.This paper has enriched researches about executive compensation level,salary gap and salary fairness from the perspective of remuneration committee member characteristics and furtherly provided new ideas for the provision of human resources,salary design and so on for salary management and corporate governance.Therefore,the thesis not only helps expand and enrich the literature about remuneration committee in the theoretical level,but also assists to strengthen and improve the remuneration committee governance effect in practice.