Correlation Study Between Executive Remuneration And Comprehensive Performance Of Listed Commercial Banks In China

Based on China's listed commercial banks as the research object, select the nine listed commercial banks' 2004-2014 panel operating data, make an empirical study on the correlation of listed commercial bank executive pay and comprehensive operating performance: First, the present study combined operating characteristics and development trend of China's listed commercial banks, to build a comprehensive, scientific and comprehensive consideration of profitability, security, liquidity indicators, growth index "four in one" listed commercial banks diversified comprehensive performance system, then using entropy method calculation model to quantify the comprehensive performance indicators of listed commercial banks objectively, in order to accurately and fully, comprehensive reflect the listed commercial bank's overall business situation. On this basis, the article draws on existing research methods and experience, to build an OLS panel regression model, in-depth study of the relationship between executive pay and comprehensive performance of listed commercial banks.The research results show that:(1) there is a positive relationship between executive compensation and overall business performance of listed commercial banks in China, and the performance contract still has a good incentive effect;(2) due to the increase of listed commercial bank assets will gradually strengthen commercial bank policy status, so the correlation of the listed commercial bank executive compensation and comprehensive performance has a negative impact;(3) the financial crisis in China under the background of the ministries issued the "salary limit order" of the Listed Commercial Bank executive compensation suppression the role of indirect description of China's commercial banks listed on executive pay is extremely high;(4) because the salary limit order of listed commercial banks excessively high salary to the limit, so between the ownership of commercial banks and the high tube performance pay contract relationship has been strengthened, thus improving the executive compensation and listing the commercial bank comprehensive performance positive correlation;(5) the modernization level of corporate governancesupervised effect of unreasonable executive compensation, thus improving the executive pay Reward and comprehensive performance of listed commercial banks is positively related to degree;(6) the difference between the nature of the enterprise, between state-owned commercial bank executive compensation and comprehensive performance of listed commercial banks is lower than that of joint-stock commercial banks, and executive compensation of state-owned commercial banks on the salary limit order is more sensitive, the executive compensation of joint-stock commercial bank more sensitive to the size of assets. The theoretical analysis and empirical results of the article, the 2008 financial crisis, the government's "salary limit order" status of extremely high salaries to restrain the Listed Commercial Bank senior management has a positive effect, but is not a scientific, reasonable, long-term mechanism to sustainable.