Corporate performance and CEO compensation exists a close relationship. In recent years, many companies continue to have a crisis occurs, however, the management of the company is still led quite a high salary, or the business itself has not given the relatively profitable reward. This study adds to the information asymmetry between performance and compensation from variable .
This study suggests that, in the general labor market, companies are willing to pay higher wages to hire highly productive employees, and there is no real way of knowing the productivity of employees before hiring employees. In this study, information asymmetry perspective to investigate whether senior managers to pay to reflect operat-ing performance . In this study, all listed companies in Taiwan as research subjects, from 2006 to 2012 in 2008 to exclude samples selected during the financial crisis ; Because this study is to compare the change in CEO compensation and corporate performance , it is based on a two-year unit of observation before the latter, and in view of the human capital management performance for empirical analysis. The results showed that corpo-rate performance will be affected by senior managers salaries , bonuses, and human cap-ital.
