Executive Compensation And Company Performance

In order to curb the excessive growth of executive compensation,the government has issued a "limit pay" policy twice.On September 16,2009,the "Guiding Opinions on Further Regulating the Remuneration Management of Central Enterprise Responsible Persons" established the framework of the executive compensation system for state-owned enterprises with basic annual salary,performance annual salary and medium-and long-term incentive income,which stipulated that the annual salary of state-owned enterprise executives shall not exceed Last year,the average salary of employees in the central enterprises was 30 times.However,the effect of the salary limit has had little effect.Then in 2014,the central government issued the "Opinions on Deepening the Reform of the Remuneration System of the Person in Charge of the Central Management Enterprise",stipulating that the implementation of the compensation system for the responsible person of the central management enterprise will be implemented from January 1,2015.The Reform Plan stipulates that the total income of the person in charge of the central enterprise shall not exceed 7-8 times the average salary of the incumbent employees.The government has imposed a pay limit on senior executives of central enterprises,restraining the excessive growth of executive compensation and achieving fair income.The 2015 pay limit is more stringent than the 2009 salary limit,and will it be better than the 2009 "restricted salary order"? This paper will study the implementation effect of the 2015 "Limited Salary Order" and its impact on the company's performance based on data from 2005 to 2016.It also analyzes whether there is a "upward effect" after the implementation of the pay limit order.The 2015 "Limited Salary" policy has experienced three fiscal years since its implementation,and its effect on pay limits and its impact on the performance of central enterprises deserves our in-depth study.On the one hand,it has certain guiding significance for enterprise identification,measurement and improvement of the executive compensation fairness of the enterprise;secondly,it has certain guiding significance for enterprises to improve their performance through salary incentives for the executives;The control policy also has certain reference and guiding significance.This paper intends to use the double difference model to analyze the impact of the "central enterprise executives' pay limit order" on the company's executive compensation and corporate performance in 2015,and use multiple linear regression studies to determine whether the non-state state-owned enterprises exist after the implementation of the "2015 pay limit".The effect of the uplink effect.The study found that:(1)The 2015 pay limit reduced the high-paying executive compensation(the top three know the senior supervisor and the top three executives),but had no effect on the ordinary executive compensation;(2)the pay limit order" The policy has reduced the performance of state-owned enterprises,and the performance of state-owned enterprises is significantly lower than that of non-state-owned enterprises.(3)The policy of salary reduction has reduced the sensitivity of ROE performance of state-owned enterprises to executive compensation;(4)The implementation of the 2009 pay limit is weaker than The 2015 pay limit order.(5)After the implementation of the pay limit policy,non-centralized state-owned enterprises have an "upward effect" phenomenon.