Research On The Impact Of Internal Compensation Gap Of Company A On Corporate Performance

Company A is a furniture manufacturing and sales company.In recent years,due to competitive incentives,rising raw materials and increasing labor costs,the company's operating performance has declined.The thesis studies from the salary gap of executives of Company A in order to analyze the impact on the operating performance of Company A.The thesis provides a research basis for the thesis by combing theories of senior manager rights,social comparison theory,and manager market theory;First,using a comparative analysis method to compare the compensation of executives at different levels of company A in the same year,it was found that the salary gaps between the general manager and the factory manager in the past three years were 77,400 yuan,73,800 yuan,and 81,000 yuan respectively.The manager of the marketing department,the lowest paid is the manager of the production department,the salary gap between the two in the past three years is 51,000 yuan.The data shows that the salary gap between managers of company A at the same level is large,and the gap between managers at the same level is too large,which causes a sense of inequity among the low-paid managers of company A and reduces the degree of teamwork.Secondly,by comparing and analyzing the salary gaps of executives at different levels of company A in different years,we found that the salary gaps between the general manager and the marketing manager in the past three years were180,000 yuan,186,100 yuan,and 212,200 yuan.The salary gaps between the general manager and the production manager in the past three years were 231,000 yuan,237,100 yuan and 252,200 yuan respectively.The salary gap between the senior managers of company A and the department managers is too large,which affects the work enthusiasm and coordination of the department managers.Finally,the trend analysis method was used to analyze the salary increase of the managers of Company A in the past three years.The salary increase of the general manager in the past two years was 18,000 yuan and 27,000 yuan,respectively;The salaries of managers in the first category increased by 17,000 yuan and 85,800 yuan respectively;the salaries of the managers in the third category increased by 11,900 yuan and 10,625 yuan,respectively.The salary increase of managers of company A at all levels is small,and the incentives for managers are poor.Research shows that company A's operating income and profits increase year byyear,but the salary gap between the general manager and the director is large,and the three financial indicators of operating income growth rate,profit margin,and profit growth rate are decreasing year by year;the internal salary gap between department managers is large,and operating income The smaller the growth rate,profit margin,and profit growth rate;the salary gap between the general manager and the department manager increases year by year;the salary gap between the general manager and the department manager,the highest paid marketing manager,increases year by year,all exceeding 180,000 yuan.The rate of profit and the growth rate of profit have decreased year by year;the salary gap between the general manager and the department manager with the lowest salary has increased year by year,all exceeding 230,000 yuan,and the growth rate of operating income,profit margin and profit growth rate have decreased year by year.The impact of the internal salary gap of company A's executives on corporate performance is mainly reflected in the yearon-year growth rate of operating income,profit margin and profit growth rate of three financial indicators,which indicates that the internal salary gap of company A's senior executives and senior executives at different levels has increased.Corporate performance has a negative impact.According to the theory of executive rights,Company A's lack of effective incentives for executives led executives to formulate a remuneration system that is beneficial to themselves,while reducing the salaries of department managers.At the same time,shareholders of Company A did not effectively restrict executive rights to enable executives to seek greater benefits.There are behaviors that endanger the interests of the company.