Corporate Performance Evaluation,Governance Mechanisms And Executive Compensation

The beginning of the21st century, the outbreak of the world was stunned when Enron, the once all-powerful "energy empire" collapsed, making many investors suffered losses, along with the company’s financial fraud scandal continues to expose and alert the world to a seemingly successful corporate governance mechanism for questioning and reflection. The mystery of "salary" as optimization, control agency costs exist in the governance mechanisms, since the birth of the modern corporate system, just like the accompanying video to be accompanied in recent years, the importance of compensation contracts in the enterprise has been gradually revealed towering experts, academics, research horizons.The remuneration contract goals can be achieved, closely related to enterprise performance evaluation, it is also to ensure that the operation of the premise of the compensation contract. For businesses, the compensation contract as a valuable factor of production, determines the survival and future development can be used to coordinate the management and shareholders conflict of interest, so that managers in decision-making behavior, towards the achievement of shareholder wealth the maximum direction, thereby mitigating the agency problem.As in recent years, China’s compensation contract gradually with foreign standards, the introduction of the annual salary system, stock options, a wide range of incentives. This article For this opportunity, first of all to the history and logic of combing through the results of previous studies, to show the theoretical significance of the research topic; then combined with the actual situation of China’s capital market, follow the goal of "agency costs are minimized, to study the salary contract and performance evaluation, taking into account the different concentration of ownership on compensation contracts, trying to improve our country manager incentive pay relatively poor status of the theory and methods, to provide a reference in order to later scholars. On the specific structure of the paper is divided into five parts:The first chapter, Introduction. Research background and significance of the topics in this article are summarized and introduced to explain the ideas and methods of the article, illustrates the structure and framework of this study, and discussed the possibility of innovation, the article several the concept is illustrated.Chapter Ⅱ, literature review. For clues on the part of the current research focuses on managers compensation contracts and the existing differences, the existing literature of ideas, methods, and conclusions collate and analyze existing literature in three main areas to make Summary (3):(1) manager’s remuneration contract;(2) the incentives of managers; managers compensation contracts under different ownership concentration. Finally, the chapter on the Review of the situation in general gave a brief summary of comments.Chapter Ⅲ, the theoretical analysis and design. This chapter in the theory on the basis of existing research, the managers of monetary remuneration and benefits of control that affect performance, governance mechanisms to explain and in-depth analysis on this basis, the five hypotheses and, based on performance indicators the selection of indicators of governance mechanisms to build three models, prepare for the later chapters of the empirical regression.Chapter Ⅳ, empirical research and analysis of results. Constructed an empirical model based on the sample as a whole, the empirical analysis and comparative studies and the empirical results obtained and the reasons to make a detailed analysis according to the different ownership concentration by the sample group.Chapter Ⅴ, Discussion and outlook. Summarize the conclusions of the full text, and the enterprise compensation management in recent years the emergence of new trends, such as stock options, a comprehensive compensation strategy to build, promote, and implement, a number of positive recommendations.This study, there are still shortcomings that need to focus on expansion of the future managers pay:consumption data access manager duties; manager salary "noise" in target selection; select a more representative reflection of the performance or continuously enrich the indicators of the value of the company; sample data.The enterprise is a contract of association, compensation contracts to a certain extent on the business management of the most important issue, but also the most difficult problem. Enterprise compensation management in recent years, new trends, such as stock options, total compensation, which aims to make people aware of the changing, forward, and the environment for the development, compensation management, only to constantly adjust, change and improve in order for employees and managers play a stimulating, skills and enterprise development strategies to adapt and promote the sustainable development of enterprises.