Product Market Competition,compensation Gap And Company Performance

The degree of marketization of China's economy is increasing,and the problem of excessive income gap has been highlighted.Too much pay gap has attracted people's attention.The reform of the salary system is imminent.However,the academic circles have made some exploratory researches on the relationship between the internal pay gap and the company's performance,but there are still some controversies..Therefore,this paper starts with the following three aspects:(1)how does product market competition affect the performance of the company?(2)how does the internal compensation gap affect the performance of the enterprise?(3)how does the competitive degree of the product market adjust the relationship between the internal compensation gap and the performance? I hope to draw a conclusion which is consistent with the actual situation,and provide a reference for the enterprises and the government to establish a reasonable salary system,so that the salary system should not only give consideration to fairness,but also give full play to the incentive function of the compensation gap.Research shows that product market competition has a positive impact on the performance of the company,the greater the degree of product market competition,the company's performance better,so reviewing the performance of the company and should not neglect the external market environment,the more the number of competitors in the market,more conducive to the promotion of the company's performance;the relationship between the salary gap between executives and employees and the company's operating performance showed an inverted "U" type,that promote the salary gap between executives and employees of enterprise of our country to the enterprise performance has interval effect,the pay gap should be controlled in a reasonable range,can not only summarize the positive relationship and negative relationship,should find the extreme point of compensation the gap between the optimal;introducing product market competition right inflection point will make the inverted "U" curve,when the product market competition degree,enterprise industry The optimal pay gap corresponding to the highest performance is increased.