The Relationship Between Executive Compensation And Enterprise Performance In Energy And Chemical Industry

Energy and chemical industry has made great contribution to economic in China.With increasing enterprise resource put into resource exploration,there exists a need of strategic adjustment for energy and chemical industry.For the strategic adjustment,compensation incentive is necessary.As a result of this,the paper is written to study the relationship between executive compensation and enterprise performance of energy and chemical industry.With the root theory of Principal-agent theory and Human capital theory,this paper divides the relationship to be researched into two parts,one of them is direct relationship,the other is indirect relationship which requires a mediation role to works on the relationship of executive compensation and enterprise performance.Collecting data from database in internet and companies in reality,the paper completes the research with the utilization of Multiple Liner Regression and Hierarchical Regression.The results present a positive relationship between cash pay and enterprise performance,equity incentive has no impact on enterprise performance.The indirect relationship of cash pay and enterprise performance has also been proved.According to research results,this paper suggests an improvement of equity incentive,a linkage mechanism among cash pay,manager ability and enterprise performance.