An Empirical Study On Executive Compensation Of Chinese Enterprises

Disclosure in China since1998, executive compensation, executive pay has beenrising. In recent years, with the completion of share reform of listed companies andcapital market, the company’s executives compensation amount is becoming more andmore striking, most of the company’s salary system design is complicated, seriouslack of transparency. At the same time, along with the listed company informationdisclosure requirements gradually improve, millions of annual salary ", the "start massappeared in public view, annual reports published after the sky-high compensationcaused extensive concern of the public media, some executive pay is reasonable alsocaused the investors questioned, executive compensation of listed companiesgradually become the focus of the public media.Executive compensation is not only a economic problem, is also a kind of socialfairness. Gap between executive compensation and the staff average wages is not onlyrelated to the work enthusiasm and creativity of the people, and is related to peoplethinking about social justice. If the executive compensation and employee appearextreme disparity between the average salary, will cause a series of social problems.Article mainly in yunnan province of26listed companies in the annual reportdata of listed companies as samples, the selection of24listed companies listed on this5years of annual report in2007-2011data, the other two listed companies of yunnangermanium and Watson biological listed due to late, then choose this2years listed in2010-2011annual report data, to deal with the relevant data and statistics, and thenselected the executives average salary income, income of the average salary forindependent director, executive pay gap between executives shareholding proportionand company performance, company size, company debt levels and company growthability index, applies Excle and Eviews software for statistics and regression analysis.Found that executives’ average salary and the performance of listed companies, into apositive relationship between size, debt levels, and the growth ability of listedcompanies has nothing to do; The independent director in the average wages wascorrelated with the performance of listed companies; Executives shareholding and theperformance of listed companies there is a weaker correlation relationship; Executivepay gap is positive correlation with the performance of listed companies.This shows that at present our country listed company executive compensationsystem is not perfect, there are serious shortcomings. Mainly displays in the executive compensation of listed companies respectively, pay attention to short-term economiceffects, on the company’s long-term development and the innovation growth abilitylack of consideration. And the system of executive compensation of listed companiesin our country is lack of strict supervision system.Therefore, executive compensation of listed companies in our country in theprocess of setting should be strengthened on the company’s long-term developmentand the innovation ability and growth ability, continuously improve the system of thecompensation committee, establish dynamic salary system, expand the proportion ofequity incentive compensation system and establishing compensation transparency,and public supervision.Listed companies as the sample data in yunnan province, however, theconclusion may have certain limitations, and throughout the country’s level ofeconomic development in yunnan province also is not a special typicality, into thiscountry, all can’t only to the study of executive compensation of listed companies is inyunnan province has certain reference significance and value. In addition, there aremany factors influencing the enterprise executive compensation, such as the welfarestandard of listed companies, the industry’s cycle, macroeconomic development,executives own age, level of education and so on will important influence on their paylevels, so besides this paper selected some influencing factors, other factors affectingresearch also is very valuable, and the comprehensive study to our country enterprisethe influence factors of executive compensation has more profound significance, theresearch accuracy also have important guiding significance.