The Diagnosis Between Ownership Structure And CEO Compensation

The CEO compensation has come under more and more consideration in academia and industry. The construction of rational manager compensation system is a core content of efficient governance, and many academicians start to carry on the empirical analysis to corporate mangers'compensation. In order to investigate the effectiveness of listed corporate'ownership structure to compensation, my paper constructs the CEO reward influence the structural model under the property right theory, the transaction cost theory, the principal-agent theory, the management science and other discipline knowledge.Base on data from annual report of companies listed in Shenzhen and Shanghai in2006 and 2007, this paper analyses effectiveness among enterprises'features, stockholding structure and CEO compensation. This article used variable like growth potential (the net profit rate of increment), the stockholder's rights concentration degree (CR3, CR5, and H5), and the stockholder's rights controlled the system (CR1, Z), the first major stockholder's nature and so on. In addition, it involves controlled variables and so on company achievements, scale, CEO age and tenure in office, and study various factors to compensation influence through multi-dimensional stepwise regression model. Because our country Major industry and the small-sized enterprises stockholder's rights structure difference is in evidence, the explanation to the interrelated factors the exist objection. This article studies the influence, relating to both stockholders'rights structure separately to the CEO compensation, with two groups of data. They can accurately explain the relations of the variables and CEO compensation.In the model, the research discovered that, The MP reward of CEO from the major industries is higher than small and medium-sized enterprises, while the total compensation is lower. The huge scale does not reduce the efficiency of companies'performance; the state-owned stock proportion reduces along with the scale reduces, and the foreign capital stock tends to along with the scale reduction in reduces, and circulates A stock proportion reduces along with the scale enhances. The controlling of the most major stockholder of large-scale and the small-sized enterprises are not strong, however, the major industries displays several major stockholder's union controlling, while the small and medium-sized enterprises stockholder's rights relatively disperser, moreover the first major stockholder and second major stockholder disparity in strength is not remarkable.The real diagnosis conclusion indicated in follows: first, Regardless of the major industry or the small and medium-sized enterprise, the company scale is the determining factor deciding the CEO reward, the company achievements and the small-sized enterprise'CEO total compensation is remarkably connected. Secondly, the stockholder's rights income already gradually became to be listed high tube personnel overall salary plan the important constituent in our country. Third, the headers in the state-owned companies also are supervised and restrained by the government, the relatively, their stockholder's rights proportion are fewer. While the foreign capital direct investment to small and medium-sized enterprise increases, the reward policy standard is higher, and CEO possibly receives the high monetary payoff; if the large-scale business owner the foreign capital circulation stock increase, CEO actual increase the controlling of the system, and also the reward increases. The stockholder's rights concentration degree and the CEO reward do not present the U relations, but present the inverse correlation. The concentration degree is higher, the reward is lower, because the stockholder's rights of small and medium-sized enterprise is dispersible, he can obtain the high annual bonus by increasing the stockholder's rights income, while Major industry CEO favors in enhancing the enterprise by using the company governance problem.Finally, this article proposes to suggest about the CEO reward mechanism, also has made the forecast to later research direction.