Empirical Analysis of Listed Company Executive Compensation and Corporate Performance

Aiming at the problem that if the 2008 listed company executive high price can improve enterprise value, this paper empirically researches on the listed company executive compensation and corporate performance according to 2009 listed company annual report data. This paper selects the 2009 A-share listed companies of Shanghai in China as research samples, empirical analysis of correlation between listed companies executive compensation and corporate performance. Executive compensation is measured with natural logarithms of total compensation executives and executives shareholding from the annual reports of listed companies ;Company performance is measured with net assets income rate and Tobin ´q. The study found: the total amount of company executive compensation and corporate performance exist significant positive correlation, the total amount of company executive compensation is significantly and positively related to the scale of company. In smaller proportion, the proportions of executive shares positively related to corporate performance.