Empirical Research On The Relationship Between Executive Compensation And Performance Of High-tech Enterprises In Shanghai And Shenzhen Stock Market

High-tech and high-tech enterprises have been attracting more and more attention as the coming of the age of knowledge economy. High-tech enterprises are the microcosmic base for high-tech industry. Their executives are the main body and the center and the precious human resources of enterprises. As one important inspect of incentive systems, compensation drives executives to work hard, so the paper aim to discuss the relationship between compensation and performance.Based on above facts, in the beginning the paper tells the significance of such a study on the development of high-tech enterprises, then reviews the relevant research of China and abroad. In the following, the paper explains relevant concepts and use positive approaches to analyze it on the basis of the agent theory, human capital theory and motive theory.Firstly, the paper brings out hypothesis and selects 68 high-tech enterprises as the sample;secondly, with the linear regression model the paper tests the relationship between executive compensation and company performance, and analyzes the factors affecting monetary compensation. Finally, it gets the following results: the compensation structure of high-tech enterprise executives is irrationality, and lack of more motive means;monetary compensation takes the effect to a certain degree, however, the stock of executives is too low to take very good incentive effect;It is unreasonable to value the compensation incentive of executives with single standard;The proportion of stock held by state affects the monetary compensation of executives, but the effect is not very significant;Both ROE and EPS are the most important factors;It is not entirely replaceable between monetary compensation and stock-based incentive. At last, the paper explains these conclusions and provides some suggestions.