Performance evaluation is not only the basic premises to implement the managerial compensation contract, but also the concrete manifestation of the managerial compensation incentive mechanism, which play an important role in achieving the target of managerial compensation incentive mechanism.

Structure of Capital and Corporate Governance:Evidence from Management Compensation;

Corporate governance system includes internal governance mechanisms, such as board of directors, management compensation and ownership structure.

This paper studies effect of capital structure on management compensation\'s sensitivity to corporate performance.

Meanwhile,how to apply these two theories in reward management to make the staff feel more fairly was also considered.

With the samples of 2000-2002 A-share public companies, the data from annual report, this article, adopting the methods of correlative analysis and multiple linear regress analysis, researches on the relationship between the managerial compensation and the company performance.

This paper expounds the practical contradictions in the managers salary administration in state-owned enterprise,analyzes some problems needing attention in reforming the managers salary administration in state-owned enterprise,and points out that the reform of the managers salary administration in state-owned enterprise should be based on the perfect systems.