Empirical Study on Executive Compensation Affecting Factors of Chinese Listed Companies

Executive compensation of Chinese listed companies has been the focus of social concern. According to the data of annual report of Chinese A-share listed companies in 2006, this paper uses regression analysis to make an empirical research of executive compensation. The results show that executive compensation has notable relationship with company performance and company scale. However, there is no significant relationship between executive compensation and the proportion of executive shares. In addition, the phenomenon of "Zero Share" is fairly general. Finally, the author suggests that we adopt stock option mechanism to inspire executives.