Can The Introduction Of Foreign Directors Improve Executive Compensation Incentives?

With the development of globalization,more and more enterprises are introducing managers with overseas background.Nowadays,overseas talents play an important role in many industries and fields in our country.In order to improve the corporate governance structure,improve operational performance,and response to economic globalization,enterprises introduce directors with overseas background to participate in the decision-making of the board of directors.It is the focus of this paper that whether the directors with overseas background can better play the role of supervision,improve executive compensation incentive mechanism,and how the differences of the system background affect the relationship between them.The results show that the introduction of foreign directors can improve executive compensation incentive,and improve executive compensation performance sensitivity.In addition,in the different nature of the property company,the directors with overseas background have different influence on compensation incentive.The study found that overseas background directors can improve the sensitivity of executive pay in state-owned listed companies.We also test under the different level of the market,the different impact of foreign background of salary incentive,and we found the market in the low level of the market,foreign directors have more positive effect on executive compensation performance.Finally,this paper further studies the impact of foreign background directors on the results of the compensation incentive.That is,whether the foreign background directors can improve the performance of the company.The results show that the foreign background directors can improve the performance of the company.That is to say,the foreign background directors can enhance the results of executive compensation incentive and improve the performance of the company.