The Study On Enterprise's Compensation Incentive System

It is a very practical method to solve the uncompetitive and ineffective of state-owned enterprises to build up an effective compensation system. The crucial problem of state-owned enterprises is reforming the ineffective compensation system, so to build up a rational compensation system is the essential of the state-owned enterprises.The thesis formulated the method of how to make an effective compensation incentive system in enterprises by normative analysis and positive research, on the purpose to solve the problem of absence performance mechanics, illogical compensation structure and deficiency long-term incentive system. The author pointed out the method of instructing the performance mechanics, regulating the compensation structure and electing long-term incentive system by deeply researching on realism and consulting related company with many reference. The author also instructed a series practical application forms for performance management and compensation system, which can be put into practice, based on the theory research. The great innovation of this thesis is the method of long-term incentive mechanics; replace the "option system" by "stock interest incentives", in order to solve the paradox of Chinese capital market and regulation. The conclusion and practical forms of this thesis provided useful references for the researcher and manager of instructing the compensation incentive system.