Abstract: Based on the 2008-2015 annual data, this paper empirically examined the double benchmark effect in the executive compensation contract of affiliated group enterprise in our country. Research indicated that, in the process of executive compensation, the executive compensation of affiliated group enterprise is affected not only by the influence of the executive compensation of the external peers, but also by the benchmark of the other listed companies within the affiliated enterprise group. As the number of companies in affiliated enterprise group increases, the internal benchmark effect is even more pronounced. Further research found that, there is tradeoff behavior in the selection of external and internal benchmark. The listed company will increase the weight of the higher of the two benchmarks. This shows that the board pay attention to the social psychology of executives when making executive compensation contracts and satisfy the executive's fair preference through the use of internal and external benchmarks,and helps us to understand and improvement the decision mechanism of executive compensation for affiliated group enterprises.

Key words: affiliated enterprise group, executive compensation, social comparison, benchmark effect