A Correiational Study Between The Senior Executives Salary Incentives And The Growth Of Power Generation Company

With the rapid development of China’s economic, electric power industry has become the most important pilot factor and carrier of economic development. If the economic develop, the power should be given a priority. This has already become an indisputable fact. However, in China, electric power industry as a special industry in the state-owned enterprises, due to its particularity and historical reasons for a long time, it is always governmental predominance, as an important part, the main body and rare human resources of this special enterprise, senior executives are particularly important to the growth of enterprise. Therefore, how to invite outstanding talents to play its potential, and to find scientific management methods, this possesses a new task to motivation theories and methods and has also become the key to the development and growth of electric power enterprises.For this, this paper researches on the relationship between senior executives incentives and the company’s growth in listed power generating companies is of important academic and realistic meaning.This paper selects the correlation between senior executives salary incentives and the growth of the listed power generating companies as a research object, by paper analyzes, normative analyzes and empirical analysis, first based on the existing research researches, make the logical analysis on the relationship of the two, analyze the effect of senior executives incentives on company’s growth.Second, approaches in detail the current situation, existing problems and reasons of senior executives salary incentive in power generating companies. Third, by using the descriptive statistical analysis and hypothesis testing methods, makes empirical studies on the relationship between senior executives incentives and the growth of the listed power generating companies.It is concluded that annual pay gap between senior executives are small, but a big gap between the inter-company.The proportion of senior executives share-holding is low, the situation of "zero holding "is serious.The regression analysis shows that there exists significant positive correlation between senior executives incentives and the growth of the listed power generating companies and there exists none significant positive correlation between senior executives share-holding and the growth of the companies.Taking into account the different circumstances of the state-owned shares, the research finds that the higher the proportion of state-owned shares, the weaker the influence effects of senior executives reward on the growth of the companies.In addition to the companies which the proportion of state-owned shares in2009is over51percent, senior executives share-holding and the company growth have passed the test, in other state-owned companies the senior executives share-holding proportion and company growth are not significantly related.Finally, this paper puts forward some countermeasures and suggestions from the aspects of standardizing the senior executives salary system, improveing the salary disclosure rules, raising the propotion of senior executives share-holding, constructing the link relationship of salary and growth, Optimizing the stock right structure, establishing handlers market, strengthening the implementation of legal system.There may exist some innovations. First, the previous papers mostly study from the aspects of senior executives salary incentive and companies performance. The papers which research the relationship between senior executives salary incentive in listed power generating companies and company growth are rare, so, this paper which researches senior executives salary incentive in listed power generating companies and company growth from the microscopic point of view is innovative.Second, this paper overcomes the limitations of unicity and diatropism in indexes choosing, tries to build the growth evaluation index system from five aspects of benefits obtained capacity, operating capacity, development capacity, cash flow, innovation capacity and makes synthetical score analysis of listed power generating companies grouth using principal component analysis which reflects comprehensively and objectively the growth of the listed power generating companies.In addition, this paper adopts the portrait evaluation index system which can reflect the dynamic changes and development trends of the various aspects of enterprises capacity, reflects the company’s growth more objectively.Third, Taking into account the hysteresis quality of incentive effects, this paper researches the impact of incentives on the companies follow-up growth taking2009as the base period, pays close attention to the impact of incentives in2009on the next year’s grouth. The period of probation is from2009to2010.The paper argues that, in theory, based on the microscopic point of view the; analysis of listed power generating companies senior executives incentive, builds evaluation growth system using principal component analysis and research the relationship between the two, this is contributed to perfect and develop motivation theory and growth theory in listed power generating companies.In practice, this will contribute to the development of effective countermeasures to improve the listed power generating companies in China executive pay incentives, to promote healthy and sustainable growth of China’s listed power generating companies.