The Influence Of The Senior Executive's Political Background And The Firm Performance To The State-owned Executive's Income

The problem of the executive's overpaid payment has caught the public attention from all over the world since the financial crisis in 2008,seven years has passed,the reformation of the benefit packages' system is always being continued,but the problem of the overpaid is still existed,and severed.Against this background,this article does a research on the payment of the senior executive,and this text divides all the state-owned enterprises into two parts,they are the competitive state-owned enterprises and the public welfare state-owned enterprises,then quest that in the different type of state-owned enterprises,the influence of the all kinds of factors to the senior executive's payment,and among all kinds of the factors,this article focuses on only two aspects,they are the executive's background and the firm performance.The reason why this text pay attention to these two factors is based on the condition that our country has a special political system,the government has a closed relation with the enterprises,in some fields,the government and the enterprises don't have a clear boundary and also don't define the responsibilities clearly,what is more,this problem especially exists in the area of the executive's payment,so make a study about the influence of the executive's background to the payment has an important practical meaning.At the same time,connected the executive's political background with the payment also has a significant influence to the the reformation of the state-owned enterprises.Meanwhile,this article also make a study about the relationship between firm performance and the executive's payment,the reason why this text does this research is because in our country,some state-owned enterprises have the responsibility to undertake particular losses permitted by policy,this responsibility will cause a negative attack to the firm performance,so in such a case,making a research about the impact of the firm performance to the executive's payment has an effect todistinguish different kinds of state-owned enterprises to conduct a directional reformation about the senior executive's payment.Based on the analysis of the article has mentioned,first,this text gives an introduction about the relative document around the world,including the executive's political background,firm performance and the executive's payment,then,take the speech that by the deputy director of the State Assets Administration into consideration,and make the standard of the trade classification which published in2012 as the rule,divide all the state-owned enterprises into two parts,they are the competitive state-owned enterprises and the political welfare enterprises,last,this article classify the academic foundation of the formation about the senior executive's payment,including the theory of agency by agreement,the best contract,incentive mechanism,then combine the relative theories with the different types of the state-owned enterprises,and make a study that in different kinds of state-owned enterprises,whether the political background and the firm performance exert the same influence or not.By processing the business data,this article finally draw the conclusions that:in the competitive state-owned enterprises,the executive's political background does not have a remarkable influence on the executive's payment,but the firm performance does have an marked influence on the executive's payment,what is more,this influence is the positive direction,that is to say,the firm performance better,the executive's payment better;in public welfare state-owned enterprises,the executive's political background does have an remarkable influence on the executive's payment,and this influence is positive to the payment,in other words,if the executive has political background,the executive tend to get the more payment,but the firm performance does not have a marked influence on the executive's payment.From the conclusions,we can say that the two hypothesizes that this article has put forward are correct.In the end,this article put forward some advice for the problems that may encounter when we impel the reformation in the future,hope to provide some help for our country.