Executive Power,Salary Levels And Perks

In recent years,there have been endless reports of perks and high-paying executive pay,and it is particularly important to develop a fair and equitable pay contract.Executives’ monetary and on-the-job consumption are an important part of executive incentive contracts,which can partly solve the contradictions between executives and shareholders and improve the value of the firm.The principal-agent theory explains that the owner will hand over the day-to-day work to the agent and give some power to the executive.When the executive is dissatisfied with his salary level,he will gradually deviate from the maximization of the shareholders’ equity and realize the increase of his own interests The Because of the uncertainty and extreme concealment of perks,it is not possible to supervise the real use of perks,which leads to the phenomenon that executives use information asymmetry and job-based self-interest behavior are very common.When the executive power is too large,The remuneration,the easier it is to use the in-service consumption to obtain their own interests.Domestic and foreign scholars believe that both the state-owned enterprises or non-state-owned enterprises in the larger enterprises,the higher the level of in-service consumption,and state-owned enterprises in the executive compensation and on-the-job consumption there is a substitute effect,a reverse relationship,The business is just the opposite.At the same time,executive power is also an important factor affecting the executive pay and on-the-job consumption level.The higher the authority given by executives,the higher the level of in-service consumption,which means that executives will use their own power to achieve their own interests.This paper starts from the theory of principal-agent,the theory of management power and the theory of incentive,combined with the domestic and foreign research point of view,The data of state-owned enterprises and non-state-owned enterprises in China’s 2013-2016 were collected and the relevant data were retrieved by Guotaian database.The empirical results show that the non-state-owned enterprises are more active than the state-owned enterprises’ As non-state-owned enterprises are not subject to government supervision,management structure bias defects,easily lead to excessive consumption level of employment.Second,the state-owned enterprises and non-state-owned enterprises,executive power is the positive impact on executive compensation levels,indicating that executives will use their own power advantage to influence the salary contract set,so as to achieve their own interests.Thirdly,there is no substitution effect between the executive compensation and the on-the-job consumption in the state-owned enterprises,but the "management fee rate" is used to measure the on-the-job consumption,the state-owned enterprises are high Remittances are negatively correlated with in-service consumption,and executive pay in non-state-owned enterprises is positively correlated with in-service consumption.Indicating that in state-owned enterprises,executives will use the implicit consumption of in-service consumption to replace the benefits of executive compensation brought about by the gap.Finally,there is a positive correlation between the intensity of job consumption and executive power in state-owned enterprises,mainly in the relationship between the intensity of executive power and the ratio of executive power,,There is no significant correlation between executive power intensity and on-the-job consumption from the perspective of board size.In non-state-owned enterprises,there is a positive correlation between the intensity of executive power and the in-service consumption,and there is no significant correlation between the power intensity at other angles and the in-service consumption.It can be concluded that the executive power is positively related to the in-service consumption Executives will use their own power advantage to take advantage of their own interests to obtain their own benefits.To sum up,how to strengthen the management of the company’s constraints,to complete internal governance,reduce the self-interest behavior of executives,corporate governance is currently the most important problem-solving.