Research On The Relationship Between Executive Compensation And Performance Of Listed Banks

Gradually become the mainstream of the knowledge economy,the importance of human capital in enterprise continuously improve,senior management is not only an important human resource for enterprises,but also an important part of enterprise core competence.And the issue of the principal-agent problem leads to the fact that the owner of the enterprise usually encourages the senior management personnel by taking a higher salary in order to pursue the maximization of his own interests.In recent years,domestic and foreign banks have repeatedly exposed the news of the annual salary of millions of banks,bank executives pay problem not only by the community wide attention,but also aroused the upsurge research in academic community.The report of the 18 th Party Congress pointed out that one of the core tasks of improving the financial market system is the deepening reform of the banking system,up to now there are 16 commercial banks have listed on the Shanghai and Shenzhen Stock Exchange,and a number of joint-stock banks are actively preparing for listing.In the middle of the financial reform,the reform of executive compensation incentive systems is imperative.As a result,the article studies the relation between banking executive pay and performance,discuss what are the influence factors of executive pay is formulated,not only for the banking industry steady operation and sustainable development is of important theoretical and realistic significance,but also can deepen the reform to provide important basis for the banking system.The research method of the paper mainly has three kinds: the literature research method,qualitative analysis method and quantitative analysis method.Based on the total of 16 listed Banks in C hina,the data from 2013 to 2016 were selected and analyzed with the SPSS20.0 software for correlation analysis and regression analysis.Among them,the correlation analysis of preliminary concluded that executive pay and earnings per share,is negatively related to the non-performing loan ratio,and various performance indicators variables does not exist between the multicollinearity.T he regression analysis is executive pay as explained variable,in the bank's performance as the explained variable,business performance through the four indicators to measure,respectively,can be on behalf of bank profitability level of the weighted average return on net assets and earnings per share,to be able to measure the safety of bank assets non-performing loan ratio,can reflect the capital adequacy ratio of Banks' liquidity,and using the bank's total assets as the control variable.The empirical results show that the executive compensation and the weighted average return on equity,non-performing loans and capital adequacy ratio is ne gatively related to earnings per share is significantly positive correlation,weak positive correlation with the bank's assets scale,operating performance in listed Banks can explain about 55% of the variation of executive pay.Finally put forward the fur ther optimization of listed state-owned Banks corporate governance structure,fully improve bank management performance appraisal index,fully improve the long-term compensation incentive system with business performance related suggestions.