Empirical Research Of The Relationship Of Executive Compensation With The Listed Commercial Banks’ Performance

Since China’s reform of state-owned commercial banks, bank executives’ salarymyth emerged more and more aroused public concern and questioning, whether bankexecutives’ compensation is too high, whether it may cause moral risk huge? Whetherexecutives pay price have significant influence on the overall performance of listedbanks? How to make the compensation of executives and the performance of listedcommercial banks to achieve internal consistency? Faced with these problems, howthe listed commercial banks to formulate a reasonable internal incentive and restraintmechanism, to make the listed commercial banks to maximize the benefits.In this article, based on the reference of domestic and foreign literature, makingthe16listed commercial banks as the research object, based on their annual financialdata in the stock market, using multiple regression to carry out empirical study on therelationship between executive compensation and performance of listed commercialbanks.Empirical analysis shows: executive compensation and the listed commercialBanks performance is significantly positive correlation, and the listed commercialBanks assets scale, the scale of the board of supervisors is a weak positive correlation,and the independence of the board of directors and equity concentration appear weaknegative correlation relationship. According to the empirical conclusions, this paperputs forward the effective optimization system of listed commercial Banks payproposal, to improve the operating performance of listed commercial Banks.