Gansu Province, State-owned Listed Companies Executive Compensation Governance

Corporate governance as an institution, embodied in the process ofbeing executed as a series of economic activities of the Company,required that the necessary cost of inputs and economic benefits, it isclear that executive pay is an extremely important system of governancearrangements and governance costs. Governance structure can play a roleto some extent by the company’s environmental impact, which is animportant aspect of regional economic environment. Gansu Province inwestern China provinces, production and operation and managementshould have its own characteristics, for the above reasons, the executivecompensation governance of state-owned listed companies to GansuProvince as the research object, the use of modern economics andcorporate governance theorybasis, focusing on statistics as researchmethods, examine the status quo of Gansu Province, state-owned listedcompanies executive compensation on the basis of the effect of twoangles from the general manager and board of directors and othergovernance body of executive compensation governance, executivecompensation arrangements on a companythe degree of influence of theresults.The research shows that the process of reform of state-ownedenterprises in our province no substantive reform of the managerremuneration behavior, and although the manager compensation contracts to meet the requirements of incentive compatibility, but obviously doesnot meet the participation constraint; governance body remunerationgovernance is notsupport for state-owned enterprises in our provincecorrelation exists between the governance structure of remuneration andcorporate performance, governance structure of state-owned enterprisesin our province pay incentive not to establish contact with the dominantcorporate performance indicators. These results for the cost of research toimprove the efficiency of the corporate governance mechanism solutionsplay to the basic role of the specified ideas.