H Company Executive Compensation Incentive Research

In 2008 a global financial storm,since then,not only the economic entities in certain aspects from the blow,many listed companies' performance is also influenced by the financial turmoil.The company's executives is the mainstay of the company,is the enterprise production and operation of decision makers,they to the enterprise development prospects have a vital role in the future.Executive compensation problem is derived from the separation of ownership and management rights,owner and operator due to information asymmetry cause the inconsistency of the goal.With the increase of the complexity of enterprise management,uncertainty increased,the problem becomes more serious.In today's era,the outstanding senior management has become a vital resource,because the competition between enterprises is more performance for the talent competition between.How to make the senior management personnel to put themselves in for the enterprise development to have become the enterprise must,and design scientific and reasonable compensation incentive effectively to senior management for the enterprise efforts to maximize performance.Research on executive compensation incentive of listed companies can guide the real impact to the business performance of enterprises design conforms to the enterprise itself characteristic of senior management personnel salary,incentives,is advantageous to the senior management in realizing their own value at the same time maintaining the performance of the enterprise,can further improve the performance of enterprises,finally achieve the interests of the senior management personnel and enterprise win-win results.Therefore,the research of the listed company executive compensation incentive effect on corporate performance is necessary.Draw lessons from domestic and foreign existing in the study of the research achievements of executive compensation and corporate performance,expectancy theory,incentive theory,human capital theory,the optimal contract theory,principal-agent theory as the theoretical basis,expounds the connotation of corporate performance,corporate performance indicators,as well as the form of executive compensation,executive compensation determinants.Combined with H of the particular case of the listed company carries on the analysis of executive pay.Firstly illustrates the current situation of H company executive compensation,and puts forward the existing problems,including single compensation structure,pay great leap forward,implicit compensation is unreasonable,lack of internal supervision,pay disclosure is not transparent and so on.Then based on the corporate performance on executive compensation incentive mechanism construction,according to the length of time is divided into the pattern design of short-term incentive and long-term incentive mode design.Short-term incentive model mainly aims at is the yearly salary pay structure design,long-term incentive mode mainly aims at the design of the stock appreciation rights.Finally put forward the relative performance evaluation model,executive compensation and executive performance,that is,corporate performance.Therefore,from the company itself to improve its governance structure,increase mental incentive to executives,deepened to the government regulation that several aspects put forward the Suggestions and countermeasures of perfect the executive compensation system,thereby to improve the performance of listed companies to provide the support on the theory and practice.