Corporate Growth And Remuneration Gap

Since the 1980 s,the rapid development of small and medium enterprises made themselves become the main force of increasing the employment rate and securing people's well-being,playing a more important role in social and economic development.The development of small and medium enterprises needs a process.Many small and medium enterprises has grown into large,famous companies,such Haier and Xiaomi.Given the present situation,small and medium enterprises has transited into organization structure incorporating researching,manufacturing,marketing from the solely manufacturing structure.During the process of upgrading transition,enterprises will attach more attention to knowledge,technology,human resource,which placing greater demand on the employees.The state-owned companies constitute a certain proportion in small and medium enterprises.In recent years,more and more evidence shows that the executive pay is not relevant to the companies' performance,so high executive pay is questioned by the public.In the year of 2009,“ the salary limit regulation” was issued to regulate state-owned listed enterprises' executives salary.In the year of 2015,to further promote the reform of the state-owned listed enterprises' salary system,the reform of the salary system of the central management enterprise was conducted to regulate the executives salary in different industries and promote social equality and justice.According to available literature,study of small and medium enterprise remuneration articles are less in China.Therefore,we choose the data of 2011-2015 in the Shen Zhen Stock Exchange SME board to explore the relationship between the corporate growth and executives pay gap,corporate growth and executives-employees pay gap.The findings show that “Tournament Theory” has been applied to explain the relationship between the corporate growth and remuneration,the corporate growth and remuneration gap.The innovative points in this paper are displayed as followed.Firstly,we take non-monetary compensation into account,including stock options,on-the-job consumption,giving remuneration a broader definition.Secondly,we divide the remuneration into executives pay gap,executives-employees pay gap,enriching the literature related.Thirdly,we explain the corporate growth from3 dimensions,the(net)assets growth,profit growth,revenue growth,evaluating the corporate growth in a more overall prospect.