The Research On The Management Incentive Compensation Contract Of Listed Company

There are many ways that can encourage managers, and the management compensation is one of them. Whether the design of management compensation contract is reasonable influences the diligence degree that management works. So, the design of management compensation contract undoubtedly has a very important meaning. Reasonable management compensation should be closely related to enterprise's performance. But most positive research results show, management compensation is not related to enterprise's performance, but is related to other factors such as scope of the enterprise, etc, except the enterprise's performance or the relationship between management compensation and enterprise's performance is very weak. The reason that kind of phenomenon produce may be as follows: the choice of performance measure is unreasonable; influence of corporate governance structure and external environment condition, etc. This paper tries hard to design more reasonable performance measure and improve corporate governance structure and external environment, discuss the method that can improve the effectiveness of the management compensation contract.This paper mainly studies the economic foundation of management compensation: agency theory, theory of enterprise and human capital theory, makes the analysis and judgement to the question appearing in the influence factors, yearly salary system and practice of system of stock option of management compensation from my points of view, and analyses the relationship between the stock option and the financial scandal of the American corporate. As to the choice of performance measure, we think that the Economic Value Added can measure the enterprise's performance more rationally, and make further improvement to the economic value-added index in the direction of the theory of stakeholders. Finally, the choice of performance measure should be financial measure mainly, and non-financial measure if necessary. The financial measure should be the combination of accounting-based performance measure and market-based performance measure. Because the efficiency of capital market of our country is very weak, the choice of the financial measure should be accounting-based measure mainly; Setting up the committee of salary relying mainly on independent director in the board of directors, evaluate the manager's performance; Setting up professional manager market as soon as possible will improve the effectiveness of the management compensation contrats.