Features Of Management Team, Executive Compensation And Corporate Performance

Facing the challenge of the integration of global economy and knowledge, senior management staffs, as decision makers and practitioners of corporate investment and financing behavior, are very important to improve the corporate performance. However, limited by the conflict of business owners and principal operators, business owners try to improve the corporate performance by the executive compensation. Therefore, how to establish reasonable and effective compensation system, how to promote the pareto optimality of executive compensation, and should the executive compensation take the characteristics of the management staffs into consideration, these problems have important value both in practice and theory.Taking the combining method of theoretical analysis and practical research, this paper demonstrates the relationship between executive compensation and corporate performance, and how the executive characteristics influence the performance to compensation sensitivity. Firstly it obtained the assumption from theoretical analysis. Secondly, through the empirical analysis of gem listed companies from 2011 to 2015, it obtained the following conclusions:(1)Executive monetary compensation and equity incentive are positively related to the corporate performance. The characteristics of the senior management team also affect the corporate performance.(2)The average age of the management team affects the incentive efficiency of compensation contracts.The older the average age, the higher efficiency of monetary compensation and lower efficiency of executive equity.(3)Women ratio of the management team can promote the corporate performance, but cannot influence the incentive efficiency.(4)The average education background of the management team affects the incentive efficiency of compensation contracts. The higher the education background, the lower efficiency of monetary compensation and higher efficiency of executive equity.(5)The average term of the management team can influence the corporate performance, the longer the average term, the more positive infect to the corporate performance. However the average term of the management team cannot influence the incentive efficiency.