Research On Executive Salary - Performance Sensitivity Of Listed Companies - Based On The Analysis Of Industry Competitive Degree

With the advancement of state compensation reform, the research of executive compensation has been well established. The sensitivity between performance and compensation has already been proved, while there are have been some researchers paying attention to the effect of industrial competition on executive compensation, most of them just simply categorized as high and low.By reading the former researches, the study explores the possible effect of industrial competition on executive compensation based on the studies about industry competition, agency theories and property rights of enterprises, then made the assumption that takes industrial competition as moderator which is calculated by HHI. The study selects samples of companies and industries from 2013 to 2014, and construct aHLM model that contains one industrial level variable. The study shows that industrial competition will strengthen the sensitivity between compensation and performance and compensation and external executive pay gap, reduce the effect of manage power on external executive pay gap, and these effect was smaller in state-owned enterprise than in non-state-owned enterprise.According to the conclusion, there are some implications. the companies belong to the low competition industry shows no strong effect of executive compensation, it is not rational to reward the executive with high compensation. the companies belong to the high competition industry shows great effect of executive compensation. The monopoly industry should consider bring in competition to break the monopoly, and established fair competition and market order.