Research On Incentive Portfolio Of Top Management Team In Chinese Listed Companies

The separation of ownership and control rights result in the incentive of TMT and become the core question in corporate governance. However, many factors cause the current incentive system unable to cope with a list of problems that appears in Chinese listed companies, and a redesigned incentive system is required to improve the TMT governance and then enhances corporate performance and value.With the introduction of two variables—"shareholders'supervision, portfolio of salary and control rights", we construct a new TMT"principle– agent"optimizing model; Moreover, basing on mathematical analysis of company performance mechanism, a linear model of corporate performance and TMT incentive portfolio is built; and also, variables of incentives and control rights are introduced to help parsing TMT incentive problems in the view of the shareholders'supervision and we succeed in separating the contribution of TMT's ability to corporate performance from their endeavor. So we propose three ways to inspirit TMT—annual salary design based on implicit value, performance-based bonus and stock ownership, and non-material incentive portfolio mode as well, which can overcome shortcomings of traditional single explicit material incentives system.At first, through in-depth exploration of above three incentive ways and scientific definition of TMT incentive domino offect, we design TMT measurement index systems of incentive portfolio and TMT incentive portfolio domino offect with applying Tournament Theory to investigate the difference in the intensity of salary incentive, stock-option incentive and control incentive among directors, supervisors and TMT.Secondly, measurement index system is designed to measure contingency influential factors of TMT incentive portfolio in listed companies from many aspects, for example, corporate ownership structure, governance condition, corporate operating condition, managers'market, and TMT level biography characteristic etc, so that we can discuss the most suitable incentive portfolio under above conditions separately. With cluster analysis of the empirical sample of listed companies in advance, we calculate optimum number of contingency influential environment by sensitivity analysis and theoretical inducement next, and achieve a structural model of TMT incentive portfolio contingency influential environment in the end. Separate measurement of TMT incentive portfolio domino offect is conducted subsequently allowing for different empirical samples in different environments.As a result, we sum up the features of TMT incentive portfolio with higher marks and constitute the best TMT incentive portfolio mode under each contingency influential environment.