Research On The Effect Of The Organizational Performance Between The Executive And General Staff

With the development of the Internet and the disclosure of corporate financial reports has been gradually refined.The dissemination way of the information is more various.The public focus on the huge attention on the compensation they receive,because the mass media has constantly exposed the "sky-high annual salary" of executives of various listed companies,.Whether at home or abroad,most academician have paid attention to the relationship between senior executive remuneration levels and organizational performance.The investigator's attention has only gradually transferred to the relationship between salary gaps and company performance,especially in recent years.The research which based on the relation between the pay gap and company performance of executives and ordinary employees has become a hot topic.The divergences in remuneration levels between senior executive and general employees will influence the psychological state and behavior performance of staffs.Therefore,the further study of the relationship between the two is not only conducive to the advancement of the development of compensation design theory,Moreover,the listed companies can be guided to design a compensation incentive system which is more in line with their own interests in practice.From 2012 to2015,the salary gap between senior executives and ordinary employees in 382 listed companies in software and information technology services industry was selected as a sample,and the total return on assets as a dependent variable,executive compensation.Employee compensation and relative pay gap between senior and ordinary employees are independent variables,asset-liability ratio and growth rate of main business income are control variables.Through the use of EXCEL to collate the original data for the corresponding correlation analysis and regression analysis.Secondly,combining the research results of the incentive effect of executive and ordinary employees pay gap with the actual situation of listed companies in China.The data analysis shows that: the salary gap between senior executives and general staffs of listed companies in China is applicable to the championship theory of salary gap,that is,enlarging the pay gap is conducive to the improvement of corporate performance;In order to ensure that the empirical results are more accurate and reliable,we replace the total return on assets as a dependent variable with EPS.The implicit difference between top management and general staff substitute for the opposite salary gap between senior executives and general staffs as an independent variable.Finally,according to the results of the analysis,This paper puts forward four suggestions: first,to improve the overall compensation of executives and ordinary employees appropriately;second,todetermine the pay gap between executives and ordinary employees according to local conditions;third,the company still needs to pay attention to the impact of the size of the company.The fourth is to improve the transparency of executive and ordinary employees of listed companies;the fifth is to widen the pay gap while considering the update of salary assessment system;sixthly,to consider monetary compensation,but also to consider the improvement of non-monetary.