Pay Gap's Relationship With Corporate Performance

Companies' compensation has been the focus of the society from all walks of life A large number of scholars on the relationship between the internal compensation and corporate performance are analyzed,and obtained the certain research results But the existing literature about the pay gap and enterprise performance research are relatively few In this paper,from the basic situation of China,in order to investigate the influence of compensation gap on enterprise performance.This paper choose the listed companies in Shanghai and shenzhen two city enterprise data from 2010-2015 as sample,according to the nature of the enterprise actual controllers,samples can be divided into state-owned enterprises and private enterprises,because the ultimate control person different nature,state-owned listed companies and private listed companies in the human capital management,business operations,resource allocation,corporate governance,there is biggish difference compensation system arrangement and so on many aspects,make compensation gap impact on corporate performance is more complicated.This paper is divided into two kinds,will pay gap between executives and executive pay gap within the team-employee compensation gap,respectively discusses the internal two types of private listed companies pay gap influence on enterprise performance,state-owned listed companies internal influence on enterprise performance,two kinds of compensation gap get the following main conclusions: 1.The executives of state-owned enterprises and private enterprises in our country-employee compensation gap and the relationship between the corporate performance is inverted U type;2.Private enterprise executives-employee compensation gap and the relationship between the corporate performance of inflection point is higher than state-owned enterprises;3.The state executive pay gap within the team and the enterprise performance relationship is inverted "U" type;4.Our country privately operated enterprise executive pay gap within the team was positively to the relationship with corporate performance.And according to the study conclusion,when the employee compensation policies of government and enterprises put forward some opinions and Suggestions.1.We will further improve the enterprise executive compensation disclosure system;2.The senior team compensation mechanism should be established in order to further optimize the structure of compensation;3.Reasonable establishing private enterprise senior team pay gap;4.Establishing reasonable pay gap between executives and employees;5.Actively promote professional manager system;6.Establish and improve the promotion mechanism.