| Summary: | 碩士 === 國立中央大學 === 人力資源管理研究所 === 99 === The purpose of the study is to discuss the relationship between top management compensation and firm performance based on the agency theory and the tournament theory.
The variables of top management compensation and firm performance variables are collected from Taiwan Economic Journal (TEJ) during 2007 to 2009, which is based on the secondary data of listed high tech companies in Taiwan. Results indicate that the top management compensation level, motivation compensation ratio, profit sharing for the top management team, and the wage differential between top management and employees have a significantly positive effect on firm performance.
According to the agency theory and the tournament theory, they provided criterions for how to decide wage structures can increase firm performance. Based on our results, we suggest firms should give their top management team more compensation by various kinds and decide an appropriate wage structure for their firm. An appropriate wage structure not only can retain the top management team but also can motivate firm’s key talents to promote their performance hard in the sequential tournaments.
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