The Study On Businessmen Remuneration Incentive Mechanism

Under modern corporation system, it must cause beneficial conflict between owners and businessmen because of corporation ownership dissociating from control, namely, agency problem. How to harmonize relation between owners and businessmen, encourage and restrict businessmen behavior, facilitate objective concurrence between owners and businessmen, reduce agency cost most has become the focus of theory and practice.Appling the achievement of principal-agency theory, it must establish and perfect effective businessmen incentive mechanism in order to exert businessmen themselves according to owner's benefit. Through encouraging businessmen (deputy) to behave according to corporation owner's(client) benefit, it can harmonize and solve benefit conflict between client and deputy. Moreover, businessmen incentive remuneration has the most important effect in reducing benefit difference between owner and businessmen. This dissertation deploy research on businessmen incentive remuneration, remuneration incentive mechanism and classic incentive model etc.On the basis of classic agency theory, incentive theory, this dissertation research on businessmen incentive remuneration mechanism through building incentive model. Moreover, This dissertation has discussed different remuneration incentive factor and incentive mechanism, and then draws useful conclusion, which is confirmed through examples afterwards. At last, this dissertation gives some suggestions for the perfection of businessmen incentive remuneration mechanism through analyzing businessmen remuneration of market environment in China.