High-tech Listed Company's Executive Pay And Corporate Performance Relationship

In modern enterprises, due to the existence of principal-agent relationship between shareholders and executives of conflict exists between the goals, to establish a reasonable pay incentives as the key to solve this problem. Nations concerning the relationship between executive pay and corporate performance, a lot of empirical research, but most are directed at all the listed company's research, very few industry-specific separate studies. Wei gang (2000) and other domestic scholars, research has shown that among the different sectors executive pay to corporate performance, there are differences in the relationship, therefore, high-tech listed companies selected in this paper targeted empirical research. High-tech enterprises are knowledge-intensive enterprises, its own characteristics determine the extent of its reliance on human resources than other traditional industries, so a reasonable pay incentives were more important.First of all, this high-tech listed 128 companies as a sample, using 2008 cross-sectional data, and from 2000 to 2008 panel data on high-tech business enterprise performance pay for executives conducted a regression analysis of the impact analysis that executive pay to corporate performance that exists between the more significant positive correlation, indicating the current high-tech executives have been in the corporate performance-related pay; In addition, the analysis also shows that firm size on the impact of executive compensation more powerful than the corporate performance, which shows the current high-tech executives incentive compensation, there are still some deficiencies; the same time, the analysis also found that executives in the long term shareholding ratio and executive compensation there is a significant positive correlation This shows that in the high-tech enterprises in the equity incentive executives will have a huge incentive.Secondly, the analysis of high-tech enterprise business impact of performance on executive pay, this article has used a mixed between 1998 and 2008 cross-sectional data for further analysis of high-tech enterprise executives pay has on the business performance impact of effects results show that: in the long-term executive compensation in the performance of high-tech enterprises, and not much impact, while the proportion of executives holding on firm performance is not much impact. This paper argues that CEO pay less impact on business performance may be due to three points: first, the existence of executive compensation "rigid"; second, between executive pay to corporate performance, low sensitivity or elasticity; third, the remuneration of executives on the demand for money has basically met the need to give them new incentives.Finally, this paper analyzes the conclusion of the high-tech executives incentive compensation control mechanism put forward his proposals.