On the Compensation Incentive Effect of Human Resource

摘要

The compensation incentive of human resource is the key of human resource management, which is the hot issue of academic field. Our study consists of stock and salary incentive of CEO, and salary incentive of employee. The main subject of our paper is to probe the incentive effect of compensation of CEO and employee. We find, for all listed companies of China, the stock compensation of CEO is positively correlated to corporate value, but not significantly, and the salary compensation is significantly negatively correlated with corporate value at the level of 5%, and the marginal salary compensation of CEO is negatively correlated to corporate value, but not significantly. Moreover, we find employee salary and its margin is not significantly negatively correlated with corporate value. Obviously, there exists some problems in the compensation management system of China listed companies, in other words, both CEO compensation and employee salary do not play a role of motivation. That means the compensation system of China listed companies to be optimized.