The Influence Factors Of Executive Compensation In Listed Companies-Based On PLS Path Modeling

Senior managers plays a very important role in the company’s development,sometimes can decide the success of an enterprise. All listed company taking the bestmeasures such as increasing pay, improving the welfare incent the enthusiasm ofexecutives.But the executive pay and corporate performance of listed companies havegreat divergence, some of the corpo--rate performance decline, but executive payrise; Executives in different situation have a great different executive compensation.This suggests that there are many unreasonable place of the executive compensationof listed companies, this will seriously affect the development of enterprise. So theinfluence factors of executive compensation of listed companies, and put forward thereasonable compen--sation incentive mechanism is particularly important to thelong-term development of the enterprise.The purpose of this paper is to study the influence factors of executive compen--sation of listed companies in Shandong province.The paper using partial least squarespathing modeling method (PLS Pathing Modeling) and SMARTPLS software to mea--sure the influence factors of executive compensation of listed companies in ShanDong province and affect the path is more intuitive and scientific.On the basis of reviewed the literature and related theory of executive compensa--tion compensation of listed companies, the paper studies the key factors affecting theexecutive compensation, analyzes the connotation of related factors and the relation--ship between the factors.12research hypothesis is proposed from different level, thispaper establish the theoretical model of the executive compensation influencingfactors. Based on2011listed companies in Shandong province on executive compen--sation and corporate performance, human capital, the company size, capital structureand governance structure of the data and using the PLS pathing modeling method thepaper has carried on the empirical research to the theory model. Through the analysisof the empirical results,the paper puts forward the optimization policy on the incentivemechanism of executive compensation of listed companies.Based on the PLS pathing modeling, we can clear found the direct and indirectinfluencing factors of executive compensation, as well as the influence and impact thesize of the path. The thesis’s research results show that the company size, corporateperformance and capital structure directly affects executive compensation; Humancapital affect executive pay through the capital structure-> business performanceindirectly, also can indirectly through capital structure impact on executive compensa--tion. So no matter how excellent executives, they must make the corresponding per--formance can get high remuneration; Corporate governance structure by the humancapital-> enterprise capital->structure performance indirectly affects executivecompensation. The study also found that the company scale have a significant impacton human capital, corporate performance and corporate capital structure.