Research On The Legal Regulation Of Executive Compensation In Listed Companies

In recent years,executive compensation has become a major project of corporate governance.The company's operating performance is deteriorating,but the company's executive pay remains high O This unreasonable pay caused the general public and related investors dissatisfaction.Therefore,how to strengthen the regulation of executive compensation has become a hot issue in academic field.This paper combs the relevant laws and regulations of executive compen sation of listed companies in China,points out the problems of executive compensation in China,and finds out the reasons.In addition,this paper draws lessons from the successful experience of foreign executive compensation regulation,combines with the development of modern companies in China,put forward targeted suggestions,in order to alleviate the problem of high salary of Chinese executives.Apart from the introduction and conclusion,this paper is divided into three parts:The first part is about the legislative practice of the legal regulation of executive compensation of listed companies in China.The development of executive compensation in China is closely related to the economic management system in each period of our country.With the reform and development of economic system,the regulation of executive compensation in China has experienced three stages:government pricing,"two low" period,and diversified compensation.At present,China has initially formed the executive compensation standard system,including laws,regulations,regulations and administrative guidance documents,folk self-discipline rules and so on.These legal norms have played a role in regulating executive compensation.The second part is the problems and reasons of executive compensation of listed companies in China.Relevant laws and regulations in our country gradually play a role on the issue of executive compensation,and the regulation of executive compensation is effective.However,there are still many problems in executive compensation in China,such as unreasonable salary structure,weak correlation between compensation and performance,and obvious industry and regional disparities.The problem of high executive salary frequently appears in Chinese companies,mainly due to the imperfection of salary decision mechanism,the unsound information disclosure system and the existence of agency problem in our country.The third part is the perfection of the legal regulation of executive compensation of listed companies in China.First of all,reasonable development of salary structure need a professional,impartial decision-making level organization.Pay decision mechanism should be perfected,corporate governance structure should be improved,compensation committee system and independent director system should be consummate.Secondly,information disclosure is an important way to solve the problem of information asymmetry.It is necessary to perfect the system of salary disclosure and clearly regulate the content,form and duty of disclosure from the legal point of view.Furthermore,strengthen the participation of shareholders,especially the introduction of SOP(Say On Pay).Foreign countries have many practices in SOP.Our country should draw lessons from the foreign legislative experience and establish the system of SOP according to the reality of our countiy.Finally,establish the standard of judicial review,including rationality standard and legality standard.