Executive Compensation Gap And Firm Performance

The scholars start to pay gap within enterprise problems paid more attention from the last century in 80 s,especially after the academic and theoretical circles for decades of debate,the salary management within the enterprise has become a hot topic.After the 2008 financial crisis,corporate performance began to decline,but the salaries of executives who have continued to increase,the gap between showing a rising trend,more and more people begin to pay more and more attention to the salary management.Since China's reform and opening up,the traditional planned economy era has become a history,the modern economic management system has played a certain role in ensuring the reasonableness of the remuneration.To some extent,the rationality of the compensation system in the process of the management of the enterprise affects the performance of the enterprise.The internal salary gap between executives is mainly reflected in the internal groups and executives and employees,and a lot of research results also confirmed with the pay gap within enterprise increase business performance significantly decreased.The executive pay gap of internal state-owned enterprises and private listed enterprises are analyzed,the relationship between the pay gap within the enterprise and business performance,explore the impact of the current background of managers' compensation gap on business conditions.Measured from the governance factors,external conditions and their own conditions such as different aspects in the process of analysis,and the reasonable evaluation factors and the influence of salary gap between executives and a clear relationship between the internal salary gap and corporate performance.An empirical analysis of the results obtained the following conclusions: first,compared to the private enterprise internal compensation gap in state-owned enterprises;secondly,the pay gap within the executive team,had a positive effect on business performance.This paper analyzes and compares the relationship between executive compensation gap and corporate performance in private enterprises and state-owned enterprises and achieved certain results.Based on the empirical research,this paper puts forward some feasible suggestions,which provides theoretical support for the executive compensation management of state-owned enterprises and private enterprises.