Abstract:

Executive incentive intensity is the core contents of incentive mechanism. Based on human capital theory and incentive theory, this paper is tested with samples of firms that have carried out incentive plan listed in China from 2005 to 2014, to study the impacts of executive incentive intensity and monetary compensation incentive intensity on enterprise development and the moderating effect of TMT human capital to them. The results indicate that equity incentive intensity has a significantly negative impact on enterprise strategic development, but monetary compensation incentive intensity can promote enterprise development; TMT human capital weakens the negative effect of equity incentive intensity on the strategic development of enterprises; TMT education level and TMT tenure promote the current salary incentive and enterprise development, but executive age has weakening moderating effect.

Key words:

executive incentive intensity, enterprise development, TMT human capital, moderating role