Research On The Financial Effect Of Executive Compensation Incentive System

Now,human resources become the key factor of social development.For enterprises,executives are the key to the growth of enterprises.Under the background of separation of power,modern enterprises produce asymmetric information and agency costs.How to promote the executives to meet their own needs,achieve their goals and reduce the agency cost,so as to achieve the consistency of the expected goals between the executives and the stakeholders,such as conflict of interest,and so on,how to promote the executives' initiative and creativity,As an important issue of principal-agent theory in the practice of listed companies,executive compensation incentive and enterprise performance are the most important issues in the design of executive compensation incentive system.The relationship also serves as a reference for companies to design executive compensation incentives.The power of executives and corporate governance is a mechanism of checks and balances.And the executive compensation incentive is restricted and influenced by both.A reasonable and effective executive compensation incentive system can give full play to the talents and management experience of the senior executives,and the enthusiasm can be effectively mobilized to stimulate their potential.In order to improve the management level and performance of enterprises,improve the efficiency of capital operation.At the same time,it can also provide different thinking angles and ways for the regulation and improvement of corporate governance mechanism.In recent years,the salary of executives of listed companies in our country Pay incentives are becoming more and more open,and executive compensation is rising in major companies,with sky-high salaries hitting the public eye.This shows the importance of executive compensation to enterprises.In this paper,the relationship between executive compensation incentives and the competitiveness of enterprises is selected as a typical case of BGY,which is the enterprise with the highest sales in the real estate industry in recent years.In order to ensure the continuous and dynamic development of BGY,we must have an attractive and competitive executive compensation incentive system.In this paper,several other enterprises in the same industry which are in the forefront of real estate sales are selected as the bidding enterprises of BGY,and the debt repayment ability,operating ability,profitability and development ability of these enterprises are compared and analyzed.In view of the value of BGY,EVA analysis method and Tobin Q analysis method are adopted.Through these methods,this paper draws a conclusion that a reasonable and effective executive compensation incentive system has a positive effect on the long-term competitiveness of enterprises to a certain extent.