Empirical Study Of The Listed Company Performance And Executive Compensation In The Financial Industry

The compensation between financial industry executives and industry executives is verydifferent because the financial industry itself is a strict control, high debt industry. Thesecharacteristics affect the corporate governance structure and then affect the executive compensationand corporate performance. To some extent, financial industry development level depends on itsexecutive decision. Thus, the study on the correlation between financial industry executivecompensation and corporate performance is significantly important to the equilibrium, stability anddevelopment of financial markets.Since2007the economy of the whole world has undergone the economic crisis, which wasalso spread to China. China's financial industry is the first part to bear the brunt. In this context,financial performance of listed company have declined in varying degrees. However, someexecutive of such firm still received the sky-high salary.This Paper selected18listed companies in the financial industry in Shanghai and Shenzhenstock from2006to2009as the research sample. With SPSS15.0software,we described the currentsituation of Top management pay and company performance of the financial industry, then, we usedsingle linear model to do correlation analysis which is researched the relationship about theexecutive pay and corporate performance. At last, basing on corporate performance, we designedexecutive pay determine model of financial companies using regression model.