Study On Compensation Motivition Of Professional Executive In China

This paper mainly aims to study how to provide the incentive compensation for professional executive in china. Firstly, some related theories are introduced to indicate why to do and how to do on the whole. These theories include the theories of demand, Entrust-Agent theories & Human Capital theories. An original idea is to apply the money psychology theories to the theories of demand. Then, the special needs of managers are made clear.Secondly, the paper emphasizes on the two models-Annual salarysystem and Executive Stock Option, and explains the practices in China and other counties such as USA and Japan, the advantages and the disadvantages of the models. Basing on the analysis, some feasible advices are put forward for our practice.Besides the two models, the paper briefs on other models of extrinsic compensation and intrinsic compensation, so that a complete compensation system for the managers is set up.Finally, the thesis makes the prospects of research on incentive compensation problems of professional executives in China.