Research On The Problems Of Executive Compensation Of Listed Companies

Since stock company was born, the operator’s incentive and constraint have always been a c ore problem which the company committed to governance but have not been solved. Occupy Wall Street event shocked the world in 2011, and China’s Ping An Insurance Company’s President and CEO Ma Mingzhe’s pre-tax annual salary reached 66.161 million Yuan in 2007, these events caused the attention of the academia, business and society. However, why did “Sky Salary” senior managers appear? What kind of background was senior managers’ salary system established under? Should consider the social public tolerance in this process? Especially are these phenomena fair? Will these gaps affect social harmony? This paper will answer these questions. It will be launched from the following several aspects concretely:First of all, the thesis introduces the related theory of executive compensation, and makes domestic and foreign literature review of factors of executive compensation from the company performance, the governance structure, company size and other aspects.Secondly, this paper introduces the historical context of executive compensation’s incentive mechanism in our country and the information disclosure system, analyzes the problems in all stages, selects the relevant data of Chinese listed companies from 2009 to 2013 as sample and carries on the descriptive statistics, gets the following conclusions: over-high value, rapid growth, obvious gap of industries and regions, increasing income disparity between executives and ordinary workers, unreasonable salary structure, big hidden income proportion and so on.This paper studies empirically the factors affecting on executive compensation. It Selects A-share listed companies in China from 2011 to 2013 as research samples, establishes multiple regression model, makes the descriptive analysis, correlation analysis and multivariate linear regression analysis using SPSS20 software, obtains conclusions: executive compensation with the enterprise performance, the company scale, the scale of the board of directors, regional factors show the positive correlation; with the establishment of the compensation committee show the negative correlation; due to data selection, executive shareholding, the proportion of independent directors are not relevant. Performance indicators, scale and region affect the executive compensation most.This paper researches the social tolerance of the income gap between executives and staff in listed company with questionnaire investigation. Results show that: 61.3% are not satisfied with the income gap; 44.0% of people’s ideal income gap between executives and staff is 200-300 thousands Yuan, 20.8% of people can tolerate the income gap of 300-400 thousands Yuan. In order to meet the target range of most people, this paper, based on "fairness" and "harmony" theory of Oriental management, puts forward some advices and measures for reference in the process of establishing the executive compensation system from the aspects of country and enterprise: thinking about the social tolerance of income gap in China, paying attention to the fair distribution of social wealth, making sure who establish the compensation system and its rules, deepening reform of the compensation, improving self-discipline of the executive, carrying on the driver of the interests, strengthening the cultivation of employees, improving the corporate image.