Research On Executive Compensation Of Listed Commercial Banks In China From The Perspective Of Bank Performance

With the advancement of financial mixed operations and the decline in the profitability of the banking industry,listed commercial banks are faced with the problem of how to improve profitability and the loss of bank executives' talents due to compensation problems.This paper takes 15 listed commercial banks in Shanghai and Shenzhen as samples,selects the panel operation data of these 15 listed commercial banks from 2010 to 2016,and conducts an empirical study on executive compensation of Chinese listed commercial banks from the perspective of bank performance.This paper builds an integrated performance evaluation system for listed commercial banks that considers profitability,liquidity,security,and growth.It uses an entropy method to objectively quantify the comprehensive performance indicators of commercial banks,and then based on the comprehensive operating performance of commercial banks.Indicators A panel regression model has been constructed to provide in-depth studies on the extent and impact of listed commercial banks' operating performance on executive compensation.The main findings are as follows:(1)The performance of China's commercial banks has a positive correlation with executive compensation.No matter whether it is a state-owned large-scale commercial bank or a small-and medium-sized joint-stock commercial bank in a listed commercial bank,the operating performance is positively related to the executive compensation.(2)The increasing scale of listed company banks has led to the dependence of commercial banks on national policies.Therefore,the increase in the size of bank assets has a negative impact on the positive correlation between operating performance and executive compensation.(3)The positive impact of the comprehensive operating performance of state-owned commercial banks on executive compensation is lower than that of joint-stock commercial banks.In terms of policy impact,state-owned commercial banks have received more pronounced effects because joint-stock commercial banks are smaller in size and more market-oriented,and are closer to the market than state-owned commercial banks.Therefore,the comprehensive operating performance of state-owned commercial banks is highly positive for executive compensation.The influence is weaker than joint-stock commercial banks.This article believes that it is necessary to closely link the operating performance of listed commercial banks with executive compensation,comprehensively improve the overall profitability of listed commercial banks,and prevent the loss of bank executives due to compensation problems.Through continuous improvement of the performance evaluation system of listed commercial banks,Weakened the government's control over state-owned commercial banks,and at the same time strengthened supervision over the banking industry,implemented a diversified compensation structure,and attached importance to long-term incentives.The innovation of this paper is to analyze the performance of commercial banks and analyze and study the profitability,liquidity,security and growth of commercial banks under the premise of financial analysis and use the entropy method.Calculate index weights,and then obtain a comprehensive index ofbank performance,in order to objectively and comprehensively analyze the performance of commercial banks.