The Influence Of The Characteristics Of State-owned Enterprises' Salary Committee On The Executive-Employee Compensation Gap

All along.with the frequent news of “high price compensation” of corporate executives.the issue of executive compensation has started to cause discussion in various circles.Since ancient times.China has had the idea of “not suffering from unequalness and unevenness”.The goals pursued by companies and employees.The pay gap between executives and employees has naturally become a hot spot for people.and this is also the focus and difficulty in the field of modern corporate governance.Due to the special nature of property rights of state-owned enterprises.excessive executive compensation will trigger heated discussion among the society.The reform of state-owned enterprise executive compensation is also one of the key and difficult points of state-owned enterprise reform.The government has also issued a number of policy documents.such as the “limit salary order” in 2009.In 2017.the State Council officially issued the “Guiding Opinions on Deepening the Reform of Stateowned Enterprises”,the "Opinions" book gives specific plans for the salary reform of stateowned enterprise executives.The compensation plan is a differentiated salary distribution method.which requires matching with the selection method.The functional nature of the enterprise is adapted to the business performance.and more emphasis is placed on the fairness of salary distribution between executives and employees.In 2007.the CSRC made clear instructions to China's listed companies and asked them to announce the performance of the remuneration committee in the annual report.This requirement has greatly improved the governance level of executive compensation in listed companies in China.In view of this.this paper attempts to explore the characteristics of the compensation committee on the salary gap between executives and employees.and proposes policy recommendations to optimize the allocation of the compensation committee.This paper first uses the literature review method to review the existing research on the characteristics of the compensation committee and the executive-employee pay gap.These two types of research have achieved fruitful results.especially the research on the executiveemployee pay gap is quite Rich.in which the research on the antecedent variables of the executive-employee pay gap has not yet taken into account the organizational governance structure of the organization.which provides an opportunity for the study of this paper.This paper chooses the compensation directly related to compensation management in the governance structure of the board of directors.As a research object.the committee analyzed the impact of this important setting on the executive-employee pay gap in the organization.Based on the three-level agency theory.management power theory and fairness theory.this paper puts forward four hypotheses.After analyzing the data of A-share state-owned listed companies in 2015-2017.it is possible to explore the relationship between the characteristics of the compensation committee and the executive-employee compensation gap.Some sort of association.The following conclusions were drawn from the study: First.the state-owned listed companies with auditing background characteristics of the remuneration committee have a smaller executive-employee pay gap;secondly.the higher the proportion of independent directors in the remuneration committee.the state-owned listed companies.The executiveemployee pay gap is even smaller.Third.the state-owned listed companies with executives among the members of the remuneration committee have higher executive-employee pay gaps.Fourth.the size of the remuneration committee of state-owned listed companies is for executives-employees.The pay gap has not had a significant impact.