Analysis On The Relationship Between Executive Compensation And Corporate Performance Of Listed Oil Companies In China

The petrochemical industry is a high-risk but high-profit industry,and the compensation of executives in the industry is relatively prominent compared with other industries.However,the fluctuation of global oil price and the production characteristics of the industry make their operation very uncertain.Because of the two rights separation,shareholders the right to the senior management personnel,business owners and operators will pursue benefit maximization,corresponding different is owner after is the maximization of shareholder wealth or company profits,interests goal difference,created a series of agency problems,in order to effectively solve the inconsistent owners and shareholders interests maximization goal,needs to establish and improve the executive compensation incentive system,so as to arouse the work enthusiasm of executives,the goal of the shareholders and executives consistent,the performance of the oil industry enterprises in China there is a what kind of relationship with executive compensation,How to mobilize the enthusiasm of senior management is the goal of this paper.Firstly,this paper measures executive compensation and corporate performance,and reviews the existing conclusions of domestic and foreign scholars on the relationship between executive compensation and corporate performance,so as to provide theoretical basis for the following empirical research.Then it interprets the current industry development trend and executive compensation status of listed companies in the oil industry in China,selects 45 listed companies from 2013 to 20186 to build models for empirical research,and finds that there is a positive correlation between corporate performance and executive compensation,and non-state-owned companies are more significant than state-owned companies.Finally,according to this article research conclusion,combination with the current oil executive compensation of listed companies in China is put forward to perfect enterprise performance evaluation system,to the top executives of short-term incentive and long-term incentive effective combination and optimization,strengthening supervision mechanism and more open and transparent disclosure of executive compensation,improve the system of professional managers of relevant policy recommendations.