Study On Compensation Incentive Mechanism Design For Manager Under The Stakeholders' Value Sharing Perspective

The problem of manager incentive is always an important subject of corporate governance.With the deeply development of the social and economic,the key to gain competitive advantage is no longer about the product,but the ability of value co-creation.It requires the integration of the human resource,the organization and technology,so that to construct the value co-creation platform.The stakeholder theory holds that the enterprise is a contract unity,and the aim of collective selection of stakeholders is sharing the cooperative surplus of the organization.Stakeholders take part in the value co-creation based on their different resources,the goal of them is the value maximization of the enterprise and they will realize their utility maximization through the value distribution.As the key stakeholders of the enterprise,the manager will share the value added of enterprise with the shareholders,the employees,the creditors and the government.That means the nature of the manager incentive in Internet economy is the corporation value allotment,which has an effect on the interest of all the other stakeholders,and the goal of the manager is the maximization of the value added of enterprise.Thus,the construction of a rational and effective manager incentive mechanism from the perspective of value added sharing to adapt to the demands of the enterprise in Internet economy,is an important issue to study and press forward.As a socialist country,compare with western capitalist countries,we have pursued the interests of different parties and the accumulation of social wealth,so that to realize common rich.These features make the financial management objects complicated,for the enterprise will not only to answer for the shareholders,but also to protect relevant stakeholders' interests so as to realize sustainable development Thus,the construction of a rational and effective manager incentive mechanism will promote the cooperation of the stakeholders,and create more value for enterprise,and it also will be the foundation of achieving common development and common prosperity of socialism.In response to this,a new manager incentive mechanism was established in this paper,which can satisfy the above demands.The logic starting point of our mechanism is value creation and sharing of the stakeholders,and the objective function of the mechanism is the maximization of value added of the firm.The value-added sharing mechanism was introduced as the foundation of the incentive mechanism,and the stakeholders' participation constraint is considered into the incentive mechanism,so that to construct the new manager incentive mechanism,and which is supported by empirical analysis.The main research content and innovation of this paper are as follows:(1)Construction of the manager incentive mechanism based on the view of stakeholders' value sharing.Most of the traditional researches of manager incentive were based on shareholder unilateral governance,and the incentive mechanism is regarded as a bilateral contract between shareholder and manager of the enterprise.However,the mechanism under this background only considered about the interest of shareholder and manager,which ignored the interest of other stakeholders of the enterprise.To solve the problem,this paper studied the manager incentive based on the view of stakeholders' value sharing.First,this paper take the maximization of value added as the manager incentive objective,for,comparing to the maximization of shareholder value,the maximization of value added can satisfy the demands of value creation and sharing of stakeholders.Second,on the basis of participation constraint and incentive conpatibility of traditional incentive mechanism,this paper introduced corporation value distribution constraint from the enterprise theory of stakeholder collective choice.These constraints combine to construct the constraint conditions of the manager mechanism based on the view of stakeholders' value sharing,which will satisfy the other stakeholders' interest demand when stimulating the managers of the corporation Third,the value-added sharing mechanism was introduced as the foundation of the incentive mechanism,and then we constructed the manager incentive model based on the view of stakeholders' value sharing.Through theoretical derivation,it can be found that under the value creation and sharing frame,the value-added sharing mechanism will promote the effort level of the manager,which means that when the stakeholders' interest demand are satisfied,the corporate value creation will improve when enhancing the value sharing proportion of the managers.(2)This paper empirically studied the effect of stakeholders' interest on manager incentive based on the view of stakeholders' value sharing,so that to verify the rationality of the proposed mechanism.First,based on the sample of Chinese A-share listed companies,this paper studied the current situation of managers' currency salary incentive and stock option incentive and obtained the influence factors from the empiricist level.Second,based on the view of stakeholders' value sharing,this paper theoretically analyzed the effect of stakeholders' interest demand on manager.Third,this paper empirically examined the relationship between stakeholders' interest demand and manager incentive,the results show that,after controlling both inner and external influence factors,manager incentive was significantly and positively associated with stakeholders' interest demand.(3)This paper empirically studied the effect of manager incentive based on the view of stakeholders' value sharing on enterprise value creation.By using a sample of Chinese A-share listed companies during 2009 to 2016,we analyze the effectiveness of manager incentive based on the view of stakeholders' value sharing.First,this paper studied the effect of value sharing proportion of manager on value added,the results show that,after controlling both stakeholders' interest demand and other influence factors,high value sharing proportion of manager will significantly enhance the value of creation.Second,this paper studied the effect of stock option incentive on value added,the results show that,after controlling both stakeholders' interest demand and other influence factors,stock option incentive could significantly enhance the value of creation.Third,this paper studied the effect of combination incentive of value sharing proportion and stock option on value added,and the results show that incentive form will significantly affect the value of creation,and the two incentive forms have seen a complementary effect on value creation.Finally,this paper studied the effect of stakeholders' interest demand on manager incentive effects,the results show that,on the whole,manager incentive will promote the value of creation,unless the stakeholders'interest are satisfied.