Research Of Relativity Between Top Executive Compensation Of Listed Company Of China And Company's Achievement

In the modern enterprises, the top managers are the key policy-makers who take on the responsibilities of making some significant policies including strategic management. They play a core role in the development of enterprise. Excellent top executives have been targets whom enterprises competing for intensively. Reasonable compensation has such functions as raising achievements and encouraging creativities.This paper studies the relationship between the salary of top managers and enterprise's achievements by using statistical description analysis and hypothesis testing analysis. It draws the following conclusions;Overall, there is a significantly positive relationship between the top executive salary and the listed company's performance. And they have a significantly linear relationship.By considering the scale of corporations, the larger the listed companies are, the higher the top executives pay is. And listed company size increases, the company's executive pay impacts on performance smaller.By considering the proportion of the state-owned shares in the listed company, part of state-owned holding company executives pay the greatest impact on company performance, followed by the state-owned holding companies, non-state-owned holding company of minimizing the impact.By considering the industry competitive environment of listed companies, Strong competitive environment of listed companies for executive pay to company performance is greater than the impact of the weak competitive environment companies.By considering the degree of economy development of area, listed companies in economically developed areas, executives'compensation impacting the performance is worse than in the backwad companies.For listed companies in different industries, executive pay to company performance has no significant correlation in addition to construction, electricity, gas and water production and supply industry, information technology and manufacturing industry.