Empirical Research On The GEM Executive Pay And Corporate Growth Of Relations

Executives are decision-makers of an enterprise, decisions they make direct where company goes, their salary has always been the focus of scholars and entrepreneurs. Effective executive salary incentive works prominent on principal-agent problem that from "separation of two rights" of our joint-stock company. The financial crisis triggered by American subprime mortgage crisis has swept across all over the world, executive salary has once again become the focus of public attention. GEM provide good financing platform for high-tech, high growth enterprises in our country as a main supplementary part to the mainboard. It is worth to discuss the effect of executives salary incentive and the contribution extent that executives salary made to enterprise growth.This article divide executives salary into currency salary, equity salary and executives stock option incentive intensity, based on which it did theory analysis about executives salary, and observes relation between executives salary and enterprise growth with correlation analysis and linear regression analysis.Which leads to the following main conclusions:equity salary of executives related more to enterprise growth, and compare with currency salary incentive, equity salary do better in promoting initiative of executives; contribution to growth from GEM executives equity rights incentive intensity is indistinctive, because the particularity of GEM, own of over high ratio of stock will produce "certain effect", which may even offset equity incentive effect of executive salary.So this paper thought that the effectiveness of the GEM listed company executive salary is decided by improving executives equity salary on basis of taking great importance to executives currency salary instead of the executives stock option incentive intensity, and avoid "certain effect" that come from over high incentive intensity. On the basis of theoretical analysis and empirical analysis, this article finally proposed some targeted suggestions.