The Impact Factors Of The Executives' Pay In The Listed Real Estate Companies

The issue of the executives'pay in listed companies has always been widely concerned by the mass, and the high pay is especially admired by the executives in many other fields. It's significant to find out and control the factors influencing the executives'pay in listed real estate companies, because it can make the interests of executives as consistent with that of shareholders or the value of the companies as possible and reduce the information asymmetry and agency costs to its lowest.This paper is instructed by the principal-agent theory, Maslow's needs theory, Herzberg two-factor theory and human capital theory (the wage gap theory) and is based on the relevant literature. In this paper, with many factors such as the size of the company, firm achievements, executives're-election, executive power and corporation nature considered, the main impact factors of the executives'pay in the Listed Real Estate Companies in the current situation of China will be discussed through theoretical and empirical analysis.Through the statistical analysis of executives'pay in the listed real estate companies between the year of 2005 and 2009, it is found that executives'monetary pay tends to increase year by year; there is an obvious difference between the pay of the executives in the state-owned real estate companies and that in the non-state-owned; the incumbency consumption level, with the marketing management charge rate as the token variable, is declining; the incumbency consumption of the executives in the state-owned real estate companies are significantly higher than that in the non-state-owned; and at the same time, the assets and the economic addition of the companies basically keep rising year by year. The study finds that size of the company, company achievements (the economic addition) and the executives' re-election have significant positive impact on the monetary pay of the executives. The size is always the main factor, because the monetary pay of the executive will increase with the size expanding. In the state-owned real estate companies, the monetary pay of the executives is low.The executives' power just has 10% significant impact on the monetary pay.The greater the power is, the higher the pay will be, but the power impact is less compared with the size and the economic addition value. Meanwhile, the impact of the size, the economic addition and the re-election on the incumbency consumption was significantly and negatively correlated; as for the power of the executives and the nature of corporations to the incumbency consumption of executives, the regression coefficient is positive. It's suggested that the bigger the size, the greater the economic addition and under the re-election of executives, the incumbency consumption is low. Nevertheless, when the power of the executives is bigger, and the real estate companies are state-owned, the incumbency consumption is accordingly higher.In addition, it's also found in the study that the monetary pay of the executives and the token variable of the incumbency consumption are significantly negatively related. In the regression analysis, the 3 variables (the asset size, the economic addition and the re-election of executives) and the incumbency consumption level are significantly negatively related.Finally, on the basis of the theoretical analysis and empirical research, about the problems in the incentive of the executives' pay in the real estate companies, a number of suggestions are put forward:the system of the executives' pay must be market-oriented; the power of executives must be focused on to change the situation of executives regulating the pay by themselves; it's necessary to speed up the establishment of the system of Remuneration by the Remuneration Committee, to establish a standardized system of a reasonable salary structure, to gradually establish and improve the professional manager market, to establish a scientific achievement evaluation system of the listed companies; and to improve the correlation of pay and the achievement etc..