Legal Research On China’s Listed Companies Executive Compensation Recovery System

Corporate executive pay in recent years has been the focus of attention in recent years in our country is attracting much attention and accusations, "astronomical salaries" phenomenon, especially in the emerging state executive, compensation management and even some local businesses in general have in a disordered and out of control. Despite the adjustment corporate executive pay policies and administrative measures introduced never stopped, but did not make the issue of executive pay situation improved significantly. Obviously, to solve their problems through policy guidance of executive compensation and executive orders corporations are necessary, but not the only way to rationalize the legal system will also help to solve this problem, because the executive pay issue but also a legal issue. In the United States and other Western countries, the law is the conventional means of regulating corporate executives pay for state-funded enterprises have the same.Executive compensation system as a corporate governance incentives, its role is to reduce agency costs. It now appears that the pay system has become an important institution in the major companies on corporate law, and also an important element of corporate governance. Executive compensation system is considered in the 2007 financial crisis was the main cause of serious moral hazard, senior management enjoys high returns only at disproportionate risk of low pay system. This gives us a lot of problems, the most important thing is to solve a lot of controversy reasonable executive compensation issues.In order to regulate executive pay unreasonable question, China has carried out relevant legislation, and for state-owned enterprises executive pay regulation, is the focus of recent legislative work. Executive compensation in the US legal regulation there is a way to learn the system, namely salary recovery system. Reclaiming system is the latest development of executive compensation system, because of its relatively new, it is also highly controversial. Reclaiming system can be agreed upon in advance salary contract, you can not recover even after the provision of the right to conduct a retrospective use afterwards. Thus, the recovery system is the essence of the remuneration of the remuneration paid by mistake (whether based on fraud or calculation errors) were recovered. Then, in the regulation of corporate executive pay issue, the executive compensation system will recover specific provisions on how to play what role, how to play a role, the paper try to discuss these issues.