A Probe Into Paying The Managers Of State-Owned Enterprises By Yearly Salary System

The social and economic conditions at the primary stage of socialist market economy in China determine the commodity feature of its labor forces,among which the managers of state-owned enterprises are becoming one of the scarce resources due to their special status,function and quality. The ten-year-long history of experimenting yearly-salary system in Shanghai since 1992 has witnessed some difficulties for its spreading,including unclear target mangers,unaccepted standard,irrational design of efficiency index,immature environment and uncertain decision-maker for paying yearly salary. On the ground of the aforementioned analysis the author proposes some effective countermeasures for implementing the yearly salary system for the managers of the state-owned enterprises. The measures areto clearly determine the target managers;to rationally decide the salary mix for them;to exactly design who will be examined and methods for examining their performances,and to set up the principles guiding the examining indexes. It can be believed that the wider implementation in the future of yearly-salary system in China will be beneficial for deepening the reform,improving the business environment,and raising the efficiency and effect of the state-owned enterprises as well.