Research On Some Issues Of Executive Compensation In Chinese Internet Listed Companies

Compared with traditional industries, the Internet industry enjoys a rapid development in quantity and size of enterprises. With echoes, the salary of senior managements in Internet companies also shows differences from traditional ones,which causes a lot of controversy and research attention. In order to clarify the executive compensation situation of Chinese Internet listed companies and put forward suggestions, this paper makes researches from these two following aspects,one is the distribution of executive compensation index, and the other one is its compensation factors.After clearing and reviewing related concepts, theoretical basis and literature,this paper uses "compensation index" model to analyze the executive compensation characteristics of China Internet listed companies, and uses multiple regression model to analyze the impact of 12 factors on it.This paper selects 100 Chinese Internet companies and collect their data in their financial statements from 2012 to 2016 to calculate the executive compensation index. The results are as follows:1, from 2011 to 2015, the gap of executives compensation index between Chinese Internet companies gradually expanded.2, the median value of executive compensation index is less than the average,which indicates that lower compensation enterprises have a greater proportion.3, 90 percent Chinese Internet listed companies are located in the eastern area,which has a higher level of economic development, better industry ecology and more favorable government policies.4, the proportion of overseas internet listed companies and domestic ones is almost equal, and the former one has an increasing trend, which is related to the differences between China and the U.S. in financial environment, capital structure,audit process and regulatory system.5, compared with other industries, the distribution difference of executive compensation of the Internet industry is more obvious, which relates to its disruptive innovation, its unique market rules and high risk high return characteristics.Through data analysis, this paper studies the influence factors of executive compensation by determining the research hypothesis, selecting the corresponding variables and carrying on the multiple linear regression analysis.The results are as follows::1 , the linear correlation is not obvious between executive compensation of listed companies and the researched 12 factors, which says the multivariate regression model hypothesis was unsuccessful.2, the impact of 12 above factors on executive compensation is not significant at the level of 95%.3, the research results about 13 U.S. listed Internet companies is the same as Chinese companies, that is to say there is no significant correlation between 12 influence factors and executive compensation in the study.4, although the linear regression relationship between executive compensation and the 12 factors is not obvious, it is significant to analyze from the angle of the positive and negative impact of the 12 factors on compensation.Compared with the research results in traditional industries, this study shows obvious differences, which is closely related to the structure of executives pay in Internet industry, the characteristics of technical subversive innovation,and the creation model of Internet companies. Based on the conclusions of this paper, this paper puts forward some suggestions on the Internet executive compensation in the industry regulation, salary structure and so on. And this paper puts forward four further study suggestions in this field.