Research On The Effect Of Executive Compensation Gap On Corporate Performance Of Great Wall Motor Company

In recent years,listed companies have frequently exposed " sky-high salary" events.High executive compensation has been questioned by the public,resulting in different degrees of pay gap,in addition to causing social debate,but also caused widespread concern in the theoretical and practical circles.If the salary gap is set too small,executives may perceive that personal pay is not rewarded,making the incentive effect is insufficient,but in addition,the salary gap is set too large,will affect the company’s employees to improve the sense of fairness,also is not conducive to improving the company’s performance.Therefore,the size of the pay gap not only affects the performance of the company,but also reflects the social efficiency and fairness.Social pursuit of the two goals,one is efficiency,the second is fairness,efficiency is closely related to the country’s economic growth,fairness and justice is related to social stability.To deal with the relationship between fairness and efficiency in income distribution is particularly important,correctly grasp and handle the relationship between the two,not only related to the healthy and stable development of the national economy,safeguarding social equity and promoting social harmony,is of great significance.This paper selects great wall automobile as the case study object,because great wall automobile in recent years in the case of financial performance growth is not obvious,the level of executive compensation rose year after year,long salary range in the passenger car industry first,caused widespread concern in the media;And great wall auto executives long salary is not for all executives,but only for the company’s few " hand-heavy power" executives,at the same time,because these executives are still in the remuneration Committee as a key position,enjoy a lot of autonomy in salary formulation,these " power" executives long salary,make the executive pay gap widened,whether the best contract or executives self-interest,worthy of further exploration.Moreover,as the pay gap between executives and employees increases,the unfairness of such distribution rules will affect employee efficiency,which in turnwill reduce corporate performance.Therefore,it is significant to select great wall automobile as the research object,evaluate the positive significance of the salary gap between senior executives and the increase of the salary gap between senior executives and employees comprehensively and objectively,and analyze the limitations.This paper analyzes the great wall automobile executives pay gap on the impact of corporate performance,first of all,the great wall automobile executives pay gap analysis,found that the great wall automobile executives pay gap is widening,and through the comparison with the company’s financial performance indicators,found that the company’s performance stagflation,while a few " power" executives annual salary growth is more than one million;Then,we use financial indicators and market indicators to analyze the performance of great wall automobile,and compared with the same industry situation,it is concluded that the great wall automobile executive compensation gap plays a positive role in the company’s performance.Secondly,from different angles to explore the impact of executive pay gap on corporate performance path,found that the impact of executive pay gap on performance path,executive pay gap on the impact of performance path,the two are different,executive pay gap widened is conducive to improving agency efficiency,reduce executive on-the-job consumption,executive pay gap widened will reduce the total factor productivity,resulting in an increase in employee turnover rate.Finally,from the reasonable arrangement of executive pay gap and pay attention to employee pay gap two aspects of the relevant recommendations,give full play to the executive team compensation mechanism of executive behavior constraints and incentives,improve employee enthusiasm and satisfaction,and promote the improvement of enterprise performance.