The Relationship between Executive Compensation and the Performance of Listed Real Estate Corporations

As the real estate industry becomes a pillar industry of China, its executive compensation has received widespread attention. To study the relationship between executive compensation and the performance of real estate corporations, this paper reviewed the studies of national and foreign scholars, and proposed three hypotheses around this issue. This paper selected the financial data of 122 listed real estate corporations, in Shanghai and Shenzhen Stock Exchange A-share markets, from the year 2011 to 2013, and did the regression analysis by STATA. The research suggested that executive cash compensation had a positive correlation with corporate performance, but there was no significant correlation between the proportion of executive shareholding and corporate performance. Neither did the research suggest that there is any interval effect in proportion of executive shareholding and corporate performance. In view of the above, this paper proposed some corresponding recommendations to improve executive compensation incentive mechanism of listed real estate corporations.