Research on the Relationship Between Executive Compensation, Corporate Performance and Corporate Governance

As the economy continues to develop, the separation of ownership and management issues makes people pay more attention to motivate senior corporate executives. Reasonable salary can motivate executives' behavior thus affecting business performance. So, what factors affect executive pay? Whether it is related to the company's performance? What is the relationship between the corporate governance structure and executive pay? Based on this paper, we study on the relationship between executive pay and corporate performances, and the relationship between executive compensation and corporate governance structure of the listed companies to provide a reasonable basis for determining executive compensation levels, improve business performance. This paper studies the relationship between executive pay and corporate performance and corporate governance structure. We chose the 2006 to 2014 A-share market listed companies as a sample to analyze. In this paper, we use the method of factor analysis to measure the company's performance. The results show that: the company managers to pay a positive correlation with the performance, but pay little elasticity relationships with managers. Meanwhile, executive compensation with the company ownership concentration and the proportion of state-owned shares are negatively correlated.