An Empirical Study On The Influence Of Top-Management Group Compensation On Organization Innovation And Performance

The top-management incentive mechanism has increasingly caught many scholarsand enterprisers’ attention. As the chairman of PICC Ma Mingzhe got the highest annualsalary of66.16million yuan, this topic has been more popular in China. Many scholarshave pointed out that a scientific and rational incentive mechanism can promoteexecutives to work hard and improve organizational performance. Thus, whether differentincentive mechanisms will make different incentive effects? Is there any significantdifference of the same incentive mechanism’s effects between high-tech enterprises andnon-high-tech enterprises? Based on the data analysis of251listed companies, this studydiscusses whether there is significant relationship between top-management incentive(short-term&long-term) and organizational innovation, performance. What’s more, thepaper also analyses whether different incentives will make difference effects, and themoderation effects of types of companies.This study consists of the following five parts. The first part is an introduction of thebackground, significance, purpose, innovation, technology roadmap and structuralarrangements of this study. Part2is a literature review, which defines some relatedconcepts, reviewed and summarized the studies about the relationship between executiveincentive and organizational innovation, performance. Part3introduces the theoreticalmodel and hypothesis of this study. Part4presents the measurement of variables and datacollection. The data analysis showed that:(1) Executives’ long-term compensation issignificant positively related to organizational innovation;(2) Executives’ short-term andlong-term compensation are both positively related to organizational performance, andcompared to long-term compensation, short-term compensation’s effect is greater;(3)Compared to non-high-tech companies, the positive relationship between executivelong-term compensation and organizational innovation in high-tech companies is greater;(4) Compared to non-high-tech companies, the positive relationship between executivelong-term compensation and organizational performance in high-tech companies is greater.The last part put forwards the conclusion of the study and the theoretical and practicalmeaning along with the research limitations and some suggestions for future studies.