Research On The Influence Of Executive Pay Of Listed Banks In China On Performance

On the background of the continuous deepening of financial reforms and the internet finance sector continuously eroding the profit of traditional bank industry,it has become the first issues banks need to consider that how banks can improve their earnings levels and how they stand out from the competition.The employment of highly qualified,highly educated and well-connected personnel to manage banks is undoubtedly the best choice for bank shareholders.However,in recent years,the high salaries paid for the employment of outstanding talents have attracted widespread attention.Whether bank executives are paid at a reasonable price and whether high salaries have promoted the improvement of bank performance has become the focus of domestic scholars.Firstly,this paper discusses the influence mechanism of executive compensation or,performance based on principal-agent theory,human capital theory and incentive theory.The impact of executive compensation on performance is mainly influenced by the mechanism of salary on job satisfaction,the effect of pay sorting mechanism,and the influence of compensation on executive risk.Then the paper uses related data to analyze the current situation of the executive compensation and performance of listed banks in China,and finds that the pay gap between Chinese bank executives is significant and the performance is relatively stable.Then,based on the financial statement data of China's listed banks from 2011 to 2016,we did an empirical analysis by using the bank's total assets return rate as the dependent variable to measure bank performance and the compensation of bank executive as the independent variable.The analysis results show that executive compensation of listed banks in China has a significant impact on bank performance.Executive compensation of state-owned banks has no significant effect on performance.The effect of executive compensation of listed banks on bank performance decreases with the increase in the scale of bank assets.Finally,based on the summary of the full text,this paper puts forward some suggestions for improvement from the aspects of improving the assessment system,reducing administrative intervention,standardizing the governance structure,forming a diversified compensation system,and improving the disclosure system,to provide a reasonable executive compensation system for Chinese banks.