How the Executive Compensation Effects the Performance of Listed Companies

This study investigates how the executive compensation effects the performance of companies. We select the relevant data from 2013 to 2015 of listed companies in China as a sample, and conduct empirical research on the samples. It is concluded that the performance levels of listed companies in China are different. We find that company performance is positively associated with executive currency remuneration and executive equity remuneration. Moreover, there are differences in executive currency compensation and stock incentives, and some listed companies face the problem of mismatch between executive compensation and company performance. The results will be useful to make a reasonable executive compensation policy when improving corporate performance.