Research On The Correlation Between Executive Compensation And Company Benefits Of Chinese Listed Companies

From the current development situation of domestic, China's listed companies, like the West of many modern enterprises, are faced with separation of ownership and principal-agent problem. Domestic listed companies pay system,in particular, senior management compensation system which exist many problems attract more and more attention.This article study the pay of executives of Chinese listed companies, trying to answer the the following questions from theoretical level and empirical perspective:First, how the status of executive compensation incentives in China listed companies? Second, what are the relationship among executives annual salary remuneration, shareholdings, company size and corporate performance? Third, whether current executives pay system of listed companies exists loophole, how to improve the executives pay system of Chinese listed companies? By answering these questions,we can make better advice.This paper first defines key concepts, then recalled the principal-agent theory, human capital theory and Motivation theory as the cornerstone of this study, on this basis summarizes the effectiveness of executive pay and corporate relevance on the findings, and analysis two main executives pay modes and their status of China listed companies. Empirical research selectes 304 samples as the object of study by the set standards, then by computing and processing, verification three assumptions, and make the conclude that executives annual salary remuneration, shareholdings, company size and corporate performance are significant positive correlation. Finally, make the recommendations on improving executive compensation of Listed companies in China.