Study On The Incentive Effect Of Executive Compensation Of Listed Companies In Equipment Manufacturing Industry

Equipment manufacturing industry is an important part of the real economy,and its high-quality development is an important embodiment of the high-quality development of China’s economy,and also the key to give full play to China’s new industrial competitive advantages during the 14 th Five-Year Plan period.At the same time of the increasing domestic economic development level,the market environment has also undergone profound changes.The more fierce competition has brought greater challenges to all walks of life,and this is also true for the equipment manufacturing industry.Only by better adapting to the trend of market changes can we achieve further development.For equipment manufacturing enterprises,senior executives play a very important role and shoulder important responsibilities in business decisions.Therefore,it is a key issue worth studying through scientific and reasonable salary incentives to create more value for enterprises.Corporate performance is an important indicator of the development state of enterprises.For equipment manufacturing enterprises,the executive compensation incentive plan formulated by them can have a positive impact on the company’s performance,and is an external embodiment of the executive compensation incentive.Based on this,this thesis focuses on the executive compensation incentive effect of listed companies in equipment manufacturing industry,aiming to reveal the impact of executive compensation incentive on the performance of listed companies in equipment manufacturing industry,so as to provide a reference basis for related enterprises to formulate executive compensation incentive plan.Research choice between 2017-2021 a-share equipment manufacturing industry listed company financial data as A sample,can reflect the profitability of listed companies,operating capacity,development ability,risk level of 13 indicators,using the application of main factor analysis to build the comprehensive evaluation system of the performance of listed companies,calculate the comprehensive performance index of listed companies.The comprehensive performance index of listed companies in equipment manufacturing industry.The comprehensive index of company performance is calculated by factor analysis method,and the incentive effect of executive compensation is measured by the relationship between the executive compensation index of listed company and the comprehensive score index of company performance.Finally,the inverted U-shaped curve relationship between executive compensation incentive and the listed equipment manufacturing company,the actual situation of company performance can be used as the theoretical basis for the formulation and adjustment of executive compensation,so as to obtain more ideal executive compensation incentive effect.The research reveals the connotation of the incentive effect of executive compensation in equipment manufacturing industry,and understands the relationship between executive compensation incentive and the theory and the optimization of executive compensation incentive system;it can provide reference for establishing reasonable executive compensation of listed companies in China.