Management Power And Executives Pay Gap Study

The executive compensation has been a hot topic for many years, particularly in the context of the recent financial crisis the executive compensation is disputed more intense. The study of the executive compensation gap is still at the initial stage from the overall home and abroad study. And these studies focus on affecting factors of the executive compensation gap and the relationship between the executive compensation gap and the corporate performance, but few people study from the perspective of Management authority. For this, this paper mainly tests that whether Chinese listed companies'managerial power has an impact on corporate executives'compensation gay? What's the impact of significantly improve of the management power on corporate executives'compensation gay? These empirical results based on above questions have a very important reference meaning for the future reform of salary payment distribution system in China.Based on the 2006-2008 Shenzhen and Shanghai A-share listed companies samples found that: First, as China's salary market reform, continuous improvement of performance pay system, equity division reform basically completed, rising corporate executives'salaries, the compensation gay has gradually widened; Second, this paper verifies the relationship between enterprise performance and pay regression, and the regression results shows that the businesses top three compensation gaps, general managers and other executives'compensation gaps have positive correlation with the performance of business relationship, which to some extent also verify the applicability of tournament theory in China; Third, empirical results show that both the top three executive's pay gap and the pay gap between general managers and other executives have a significant relationship with the administrative powers, and is positively correlated with the managing term and two part-time job, have a significant negative correlation with ownership concentration, and the results tentative verify the theory of management authority.According to conclusion of this article, the following recommendations are: further improve the information disclosure system; improve the proportion of performance in the examination of compensation assessment; according human capital-oriented pricing model determine the structure of executive pay; improve corporate governance, strengthen the independence of independent directors and the remuneration committee; enhance shareholders'discourse power on executive pay; and establish a sound market manager.