Financial Listed Companies In China Executive Pay Issues Resolved,

By analyzing executives' remuneration of the listed financial companies, the paper discusses the internal logic among reasonable remuneration scheme, corporate performance, corporate business scale, corporate capital structure and incentive scheme itself as well. Also, the paper points out some suggestions to improve incentive scheme to the executives of listed financial companies.Through the analysis, we can find the executives' remuneration of listed financial companies increased rapidly year by year; Both the amount increased and the increment ratio ranked top 20% comparing with whole list companies; The long-term incentive scheme that combines with basic salary and performance bonus has been established; In terms of executives' remuneration in different types of financial companies, there is a large gap. A large gap even exists among same type financial companies while having different capital structures; There is a strong correlation between listed financial companies executives' remuneration and net profit increment ratio.It is found followng reasons had made executives'remuneration of listed financial companies increased rapidly, 1) Listed financial companies enjoyed the advantages brought by its monopoly position; 2) Improper incentive scheme; 3) Lacking of sufficient administration on executives'remuneration.The corporate performance is affected by corporate scale, capital structure, incentive scheme itself, life cycle of the corporate and the special conditions of immature China capital market. Thus, simply copying western mature executives' incentive scheme might not apply to local practice. The paper tries to introduce more economical ratio to assess the performance of local listed financial companies, further presents some suggestions to incentive scheme.