Industry Performance,TMT Payment and Validity of Payment Committee -A Test on the Theory of Management Power

摘要

The theory of management power suggests that executives can use their power to maximize their own interests to achieve a variety of ways to reduce the cost of the incentive,and become the source of agency costs.The proper executive payment and monitoring mechanism is not contracted,and executive payment system has become a rent-seeking tool for executives.In the global economy recession period,the Chinese govemment is to seek effective measures to curb the economic downturn trend,top management team (TMT) payment are still"sky-high",which became the focal point of controversy.We took Shanghai and Shenzhen listed companies in the year 2002-2007 as the example; examine the theory of management power which increases TMT payment,not decrease to explain the phenomenon of power.Study found that TMT payment is associated with the overall industry performance.The results showed that there is no significant relation between industry performance and TMT payment increase while in recession period.However,the relation is quite significant while economy is ascending.Industry performance plays a"sticky"effect on TMT payment.Meanwhile,if the firm is state-owned,the effect is quite obvious.