Correlation Research Of Executive Compensation And Corporate Performance Of Henan Provincial State-owned Listed Companies

Executive compensation of state-owned enterprises has traditionally been very sensitive topic,since promulgation and implementation of "the reform program of head compensation system for the central management enterprises",known as "salary limit order",executive compensation of state-owned enterprises has become the social focus again.Public whispering and evaluation for the executive compensation level of state-owned enterprises,to a large extent,reflected that the formulating of current executive compensation of state-owned enterprises lacked the normative order and scientific rationale,there are some unreasonable points in the executive compensation system of state-owned enterprises.Therefore,research on executive compensation system of state-owned enterprises is the need of promoting the practice of executive compensation reform of state-owned enterprises,which has certain practical significance to solve the executive compensation mechanism design of state-owned enterprises.This paper,taking executive compensation of Henan provincial state-owned listed companies as the research object,using the relevant data from 2004 to 2015,the correlation between executive compensation and corporate performance was tested through the construction of multiple linear regression analysis model,more clearly revealed the perfection of the performance-based compensation system.The results showed that there was no good correlation between executive compensation and corporate performance in Henan provincial state-owned listed companies,the compensation system could not play an effective incentive role for executives.Then,on this basis putted forward some reasonable suggestions for the optimization design of executive compensation system,with a view to provide beneficial reference and support for deepening the head compensation reform of state-owned enterprises in Henan Province.Innovation of this paper is mainly reflected in the following three aspects: First,maked a comparative study of the whole samples on the relationship of executive compensation and corporate performance between provincial state-owned listed companies and non-state-owned listed companies in Henan,which more objectively showed the reality of the executive compensation incentive effect of Henan provincial state-owned listed companies;Second,on the basis of absolute performance evaluation,the method of relative performance evaluation was further adopted to evaluate the business performance of the company,which avoided the singleness of index and unreliability of conclusion caused by simply using ROE to measure performance;Third,breaking through the limitation of focusing only on compensation in executive compensation research,based on systemic analysis,expanding the research ideas,putted forward the countermeasures and suggestions of improving and perfecting executive compensation system and supervision system for Henan provincial state-owned listed companies from improving executive selection mechanism,establishing a scientific and feasible performance management system,implementing comprehensive compensation incentive system,improving the internal governance structure of the company and enhancing the transparency level of executive compensation information.