Research on the correlation between performance and compensation of executive and staff in agricultural enterprises

Abstract

In order to stimulate the activity of executive and staff in agricultural enterprises and improve management measures, we adopt semi-log weighted least square regression method to analyze the correlation between enterprise performance and compensation of executive and staff. Analysis results show that correlation between enterprise performance and the total and average compensation of senior executives, the highest executive's pay and staffs' average salaries is obvious. And the correlation rises quickly at first, then at a lower speed to a certain level, and even declines in the end. The increase of highest executive's pay can maximally improve enterprise performance. And increasing the total executive compensation can also enhance enterprise performance to a certain extent. © 2011 Springer-Verlag Berlin Heidelberg.