Research on the Relationship Between Executive Compensation and Corporate Performance

Abstract

In the modern fast-growing market, enterprises need to have keen insight and steady decision-making ability to adapt to the changing market environment and make corresponding adaptive changes, so as to better grasp the maintenance and development path of enterprises. In this process, senior managers play an important role and bear an important responsibility. This paper focuses on the relationship between executive compensation and corporate performance, and take the core competitiveness into consideration. This paper selects 424 A-share listed companies from 2016 to 2020 as the research object for research. We draw the following conclusions: (1) The promotion of executive compensation incentive can promote the improvement of enterprise performance; (2) Core competence has a significant mediating effect between executive compensation and corporate performance. Through this study, it is found that the correlation between the two and the role of core competitiveness are helpful for enterprises to make corresponding salary structure adjustment and give full play to the enthusiasm of executives; On the one hand, it can ensure the good operation of enterprises, on the other hand, it can avoid the stimulation of social class contradictions.