Is Executive Compensation of Chinese Listed Tourism Companies Sticky

In recent years, the endless executives astronomical salaries phenomenon caused the public to question the rationality of executive compensation. In to alleviate the public controversy and discontent, our government promulgated salary limit order and other policies to intervene executive compensation. After that, whether the executive compensation of Chinese listed tourism companies stickiness still exist ? This paper conducted theoretical and multiple regression analysis of executive compensation stickiness for Chinese listed companies in the tourism sector during 2009-2013. All financial data and relevant information on compensation and firm performance used in this study came from annual financial reports of listed tourism companies. The results show that: executive compensation and firm performance showed a significant positive correlation, which indicated that it has been established a compensation system associated with the firm performance; further found that when the firm performance rise, the increase of executive compensation was greater than it reduce when the firm performance decrease,but the result was not significant. Finally, according to the results, the paper puts forward that the executive compensation mechanism of listed tourism companies should have the functions of incentive and constraint, implement equity incentive, and the government should strengthen supervision measures.