The Research On Incentive Reward For Senior Managers In Listed Companies In China

With the Reform of State-owned Enterprises and the establishment of modern enterprises system in China, the study is deepened in the area of the motivation and control mechanism for senior managers in enterprises, of which the key content is the incentive reward system for senior managers.This thesis comprises three parts: the theory of incentive reward is discussed in the first part; then an empirical research on the incentive reward system for senior managers in listed companies in China is analyzed in the second part; finally some suggestions are given in the last part.The empirical study of incentive reward system for senior managers in 1243 example listed companies in China concentrates on reward amount, reward structure, and the incentive intensity of rewards, with the statistic method of line regression. Overall study is taken first, and then followed by the particular studies which take account of the influence of company scale and trade character respectively.According to the empirical study results, firstly, Chinese senior managers' reward amount is generally low but has increased remarkably, their reward amount differences are huge, the proportions of the short-term and long-term incentive rewards within reward structure are improper, and the amount of managers' incentive reward is irrelative to company performance generally.Secondly, senior managers' reward amount has prominently weak correlativity to the company assets, that is, their reward amount increases with company assets. Furthermore, the scale of company assets has certain influence on the correlativity between senior manager's reward amount and company performance.Thirdly, senior managers' reward amount varies a lot in different trades in China, so does the company performance. Moreover, the trade characters have great influence on the correlation between senior managers' reward amount and company performance.On the basis of theoretical and empirical study, six suggestions are given for the improvement of incentive reward system for senior managers in Chinese listed companies: firstly, to improve principals' dynamic role in motivating agents; secondly, to develop the performance-related incentive reward system; thirdly, to regulate senior managers' performance appraisal system; fourthly, to diversify senior managers' incentive rewards; fifthly, to use various motivation and control systems in an integrative way; sixthly, to improve the organizational structures of listed companies.