Research On Executive Compensation Structure, Team Stability And Corporate Performance

In modern corporate governance,the compensation system has always been regarded as an effective measure to solve the principal-agent problem,so how to effectively design the compensation incentive mechanism,and keep the manager’s own interests consistent with the interests of enterprises,is the core problem to be solved by enterprise management.In the existing research,most scholars focus on the relationship between pay level and enterprise performance,and think that compensation is the most direct way to motivate executives to work hard to improve performance.However,some scholars have found that in order to establish an effective compensation incentive system,we should not only pay attention to the level of executive compensation,but also pay attention to the rationality of executive compensation structure,because the salary structure is more motivating to executives than the salary level,and can promote the improvement of the value of the company.Therefore,it is of great significance to study the relationship between salary structure and enterprise performance.In addition,the executive team,as the most important team form of the enterprise,is the formulation of the enterprise strategic decision,plays a key role in the development and progress of the enterprise.However,the economic consequences of the team stability and whether it is affected by the pay factor,is worth discussing the problem.Therefore,this paper puts the executive compensation structure,team stability and enterprise performance into the same research framework to explore the existing relationship between the three.Based on the existing research,based on the principal-agent theory,human capital Theory and incentive theory,and combining theoretical research with empirical research,this paper selects the non-financial listed companies of Shanghai and Shenzhen A-shares from 2010 to 2017 as a research sample,to explore the relationship between executive compensation structure,team stability and enterprise performance.The empirical results show that: the executive compensation structure has a significant positive impact on team stability and enterprise performance,and team stability plays a part of the intermediary role between compensation structure and enterprise performance.It shows that the executive compensation structure can directly affect the performance of the enterprise,and can also indirectly affect the performance of the enterprise by affecting the stability of the team.The above results are still established after the robustness test,and further research shows that the intermediary role of team stability in non-state-owned enterprises is still significant,and the intermediary role of team stability is greater in enterprises that include core executive changes.The conclusion of this paper deepens the related research of salary structure and performance,which is helpful for enterprises to better understand the internal mechanism of the function of compensation structure.Consequently,it is not only for the development of enterprises,but also for enterprises to stabilize executives and adjust the incentive mechanism of executive compensation has important enlightenment significance.