The Empirical Study Of Executive Compensation And Corporate Performance Correlation In Computer Application Services

With the approach of the knowledge era, companies face increasing pressures and fierce competition. In order to make long-term stable and healthy development, what enterprise management focus on is gradually tilted from physical capital to human capital. Senior managers are not only the enterprise human capital, but also the special population in the company, Although they are not the owner of the enterprises, but their management capability is directly related to the survival and development situation of enterprises, They play a vital role in the entire enterprises.Thus the incentive for executives and how to build incentives to adapt to their own circumstances, what the academic and business research has focused on.Based on the principal-agent theory, incentive theory and human capital theory, the empirical select the Computer Application Services for the study and select2010-2012year listed companies in the industry as the research sample.Through descriptive statistical analysis overview Computer Application Services status quo; By constructing models, analysis of the data in the industry research whether executive compensation----enterprise performance impact associated with, as well as several factors on the correlation between the two; Based on multiple linear regression results showed that:there is a significant positive correlation between the listed company of Computer Application Services executive compensation and corporate performance; Executive ownership can significantly strengthen the positive correlation between the two; The larger the size of the company, The higher the concentration of ownership, the better and the higher the correlation between the two state-owned stake; The higher the proportion of state ownership, the weaker the correlation between the two. This indicates that China Computer Application Services listed companies gradually realized almost pegged senior executive compensation and corporate performance system.But on senior executive compensation incentives are still insufficient long-term incentive, economies of scale and lack of corporate governance and other issues need to be improved. Finally, the results of empirical analysis, This paper presents a comprehensive executive compensation incentives in the industry some suggestions and measurest, including expanding financing channels; according to their own conditions to selectively increase the long-term incentives, particularly in the equity incentive incentives in proportion; achieve large-scale construction industry to demonstrate the effect of large enterprises to help build and optimize the company’s governance structure; achieve professional manager market, the establishment of an effective and transparent scientific personnel selection system; Introduction of EVA index, taking diverse, complex index build performance evaluation system; establish a remuneration committee and give full play to its supervision and control functions; remuneration of executives of listed companies to improve the information disclosure system. I hope that the proposal could develop scientific and rational and effective incentive compensation program for senior executives of Computer Application Services listed companies and industry executive incentives to improve the play theoretical guidance and practical reference.