Study on senior executive's salary incentive mechanism of China's listed companies

Senior executive's salary system of China listed companies has been unreasonable, and their human resources can't be assigned according to distributing principles of production factors, which makes the senior executives lack enthusiasm and creativity and causes the financial situation and operation of some listed companies to increasingly worsen. Therefore, it vital to study senior executive's salary system of listed companies to achieve listed companies' sustainable development and that of the security market. The authors have summarized relevant research on salary incentive at home and abroad, gathered 21 financial indexes and non-financial data of 982 listed companies in 2002, and analyzed the correlation between senior executives' salary and financial and non-financial indexes in China listed companies. Based on the empirical conclusion, the authors have designed corresponding indexes according to overall performance, proposing salary mode, the implementation of basic salaries and risk remuneration