RESEARCH ON THE EFFECT OF EXECUTIVE COMPENSATION STRUCTURE ON THE GROWTH OF A-SHARE LISTED COMPANIES

Abstract

As a kind of special human capital, executives play an important role in the survival and development of modern enterprises. The decision-making of senior executives has a significant impact on the development of listed company, which is related to the growth of the enterprise. A good incentive mechanism is conducive to the long-term development of the enterprise. However, the management of executive compensation in China is still in a relatively disordered state, and the compensation structure is unreasonable, which is not conducive to the sustainable development of enterprises. One of the most obvious characteristics of modern enterprises is the separation of ownership and management, which forms the principal-agent relationship between owners (shareholders) and managers (managers). In the daily business activities of the company, the operator will replace the owner to manage the enterprise. This paper investigated the characteristics of executive compensation incentive of listed company at home and abroad, uses the method of combining theoretical research and empirical research, and proposes to take firm growing as the goal, value of human capital as the core, corporate governance system as the basis, market competition environment as the premise, and external regulatory mechanism as the constraint condition, to build a foundation for future determination mechanism of executive compensation structure.

Keywords: Compensation Structure; Value of Human Capital; Firm Growing; Compensation System; Listed Company

 

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Author
CHEN YING