Executive Bargaining Power?Environmental Uncertainty And Pay For Luck In Executive Compensation

With the ever-growing economy and the continuous improvement of people's living standards,the pay issue has gradually gained the public's attention.In recent years,the performance of listed companies has declined,but executive compensation has risen rather than risen,and the reasonableness and transparency of executive compen.sation have been questioned by small and medium shareholders.Recent studies have found that there are uncontrollable exogenous factors in corporate performance,called "luck." "Luck" performance refers to changes in corporate performance brought about by market fluctuations.In the business climate,we regard it as good "luck." In real life,executives often rely on "good luck" to obtain excess pay above the performance level.Based on the theory of optimal contract,theory of management power,and labor market theory,this paper associates senior executive luck compensation with executive bargaining power and uncertainties in the industry environment,and studies their interactions with executive compensation.The effect of"lucky" sensitivity.This article uses the 2012-2016 A-share listed company as a sample to conduct an empirical analysis.First,it introduces the research background,research significance,main content framework,and innovation points of the article;secondly,the "luck" salary,executive bargaining power,and industry environment are not.The deterministic relevant literature is reviewed and commented on;thirdly,the relevant theoretical basis of this paper is elaborated;fourthly,the research hypothesis is proposed and the selection of relevant variables is introduced,based on which the regression model is established;and finally,the executive bargaining power and industry An empirical test of environmental uncertainty and executive luck compensation.The study found that:? there are "luck" salaries in the executive compensation of listed companies,and the executives with strong bargaining power have higher sensitivity to "luck";? the uncertainties in the industry environment reduce the executive compensation to "luck" Sensitivity;? under conditions of environmental uncertainty,the sensitivity of executive bargaining power to "luck"compensation has decreased.The main contributions of this study are:First,through research,it is confirmed that there is a significant "luck" component in executive compensation.In order to better motivate executives to identify risks,seize the market's potential opportunities to grow,and increase executive compensation and market efficiency.The combination is an effective incentive method;secondly,by examining the impact of executive bargaining power on "luck" salaries,executives with strong bargaining power can better respond to market changes and earn premiums on system risks,and their salaries.Sensitivity to "luck",has increased.Finally,the sensitivity of environmental uncertainty to "luck",salaries has been verified.It has been found that environmental uncertainties raise the risk of compensation.In order to ensure the stability of salaries,senior executives often ask for lower salaries.The "luck" component.Based on the above issues,the paper proposes relevant suggestions including:pay attention to the impact of market factors,link executive compensation with industry benefits,improve the construction of the labor market,promote the marketization of executive compensation,respond to environmental uncertainties,and pay attention to long-term incentives for executive compensation.