Executive Background Characteristics,Compensation Structure And Enterprise Performance

In recent years,much attention has focused on the management of enterprises'leaders.As the leader of enterprises,the top management team is more prominent under the modern enterprise system with the separation of two rights,which requires the owners of enterprises to consider whether their background characteristics can promote the development of enterprises.From the practical experience,enterprises usually conduct a detailed human resources survey on the personal background of senior managers after the general interview or inspection.The professional background survey is an important part of it,so we can see the importance of the career background characteristics of senior managers to the business development of enterprises.The traditional research focused on the executives' demographic characteristics.On the impact of corporate performance,few can systematically study the career background characteristics of executives on corporate performance.Therefore,from the career experiences of executives,this paper focuses on the financial background,academic background,overseas background and government background of executives.Based on the empirical data in Shanghai and Shenzhen stock markets,this paper examines the impact of these background characteristics of executives on corporate performance.At the same time,this paper studies the structure of executive compensation,namely,the proportion of shareholding and fixed compensation of executives,as one of the important moderating variables.Combined with the impact on the functional background of executives,we can find different moderating effects on corporate performance through different means of executive incentiveThe conclusions of this paper are as follows:(1)The financial background,academic background and government background of executives have a significant positive impact on corporate performance.(2)The overseas background of executives has a significant negative impact on corporate performance.(3)The compensation structure has a significant moderating effect on the relationship between the professional background characteristics of the top management team and corporate performance.(4)The influence of "salary limit order" on the performance of state-owned enterprises is limited,and it does not change the influence relationship of executive functional background and the adjustment role of fixed salary.In this regard,this paper gives the following suggestions:(1)Establish a reasonable selection system of the management team,so that the work of the executive team background diversification,in order to achieve a variety of backgrounds to learn from each other.(2)From the aspect of corporate governance,actively implementing the executive training system and establishing the rotation system of the executive team are conducive to training talents and expanding the boundary of executive thinking,thus promoting enterprise decision-making.(3)In order to reduce the agency problem of senior managers,we should pay attention to the combination of long-term incentives such as equity and carefully use fixed compensation incentives.(4)Promote the vitality of state-owned enterprises and strengthen the fair competition in the economic system,reduce the natural policy and policy dependence of state-owned enterprises,and make the social resources get rational distribution and efficient utilization.The research of this paper has certain theoretical and practical significance:Theoretically,it enriches the influence of functional background characteristics on corporate performance in the theory of top management team.In practice,it is found that the impact of different functional backgrounds on corporate performance is not consistent.Combined with the adjustment of executive compensation structure,it can guide the actual selection of executives.