The Empirical Study Between Senior Executives' Remuneration And Comprehensive Performance Of Chinese Listed Commercial Banks

The banking industry occupies a very important position in our national economy,and the overall development of the banking industry plays a dominant role in our country's economic development.Therefore,we should make great efforts to improve the comprehensive professional qualities of the bank executives so that they can focus on the management of the bank and improve the performance of the integrated management.The news about the "sky-high salary" of senior executives in the banking industry is endless.The introduction of the "pay limit order" in 2015 has led to a sharp decline in executive pay of state-owned commercial banks.The executive pay of joint-stock commercial banks is still very high,but their performance has not changed much.So it is worth thinking about how the executive compensation is determined and how it relates to the overall operating performance.This paper first reviews the research results at home and abroad,and explains this phenomenon through related theories.Secondly,this paper briefly introduces the current situation of executive compensation and operating conditions of listed banks in Chinese Mainland,and uses entropy weight method to measure the comprehensive performance of banks.Thirdly,the data of 16 commercial banks listed before 2015 from 2010 to 2017 are selected as samples.Finally,this paper constructs an empirical model and uses multiple linear regression method to analyze the data of joint-stock commercial banks and state-owned commercial banks,and then draws corresponding conclusions and puts forward relevant policy recommendations.Through the study of this paper,we find that:1.There is a significant positive correlation between executive pay and comprehensive performance of joint-stock commercial banks;2.The relationship between executive pay and comprehensive performance of state-owned commercial banks is not significant;3.The promulgation of the "Limit Pay Order" makes the positive correlation between senior executives'remuneration and business performance of commercial banks greater,and the influence of executive compensation of state-owned commercial banks is more sensitive.4.The larger the scale of commercial banks,the smaller the correlation between executive compensation and business performance.The smaller the scale of commercial banks,the greater the correlation between executive compensation and business performance.Finally,on the basis of the above conclusions,the following suggestions are put forward:Setting up the comprehensive performance appraisal system of listed commercial banks;Constructing the incentive system combining long-term incentive with short-term incentive;Optimize the corporate governance system of modern commercial banks.Conscientiously fulfill social responsibilities and make contributions to the development of national economy and poverty-stricken areas.Speeding up the construction of salary information disclosure of listed commercial bank-System...