The Study On The Reward Incentive Contract Of The Upper Managers In The Process Of Economical Transition Of Our Country

Financial agency problem is an evitable phenomenon in the modern businessorganization system owing to the segregation of capital provider and user as well as that ofownership and control of corporate assets. In the process of economical transition of ourcountry, the uncertainty of investment entities of state-owned capital and internal financingresult in severe twisting of principal and agent relationship lead to the problems of internalcontrol by managers and debt soft restrictions from state-owned banks.Measures to solve the problems of financial agency mainly include setting up effectivesupervise and incentive mechanisms. this paper mainly focuses on the incentive mechanismsof reward to the upper managers in the listed companies in the process of economicaltransition of our country from the financial conflicts owing to the segregation of capitalprovider and user and the methods to solve the problem above.The paper illustrates the reward incentive problem of upper management level of listedcompanies through five parts. The first chapter induces the problem of the managementincentive from financial agency problem owing to the segregation of capital provider and user.The second chapter introduces the research development of management incentive . it pointsout some characteristics of management incentive. The third chapter compares themanagement reward incentive mechanism of listed companies in our country with the ones offoreign countries and summarizes the advantages points and disadvantage points ofmanagement reward incentive regulation in different market background .The fourth chapterestablishes the upper management reward incentive contract of the listed companies in ourcountry. The fifth chapter mainly discusses the relative measures regard of the uppermanagement reward incentive contract of the listed companies.The paper creates some sections: according to comparing management reward incentivemechanism of the listed companies in our country with the ones of foreign countries and thestatistics research about the reward of the upper management level in the listed companies ,The paper gives some advice on establishing the upper level management reward incentiveregulation of listed companies in the course of economic reform . the paper discusses thedesign of the incentive contract to managers to add the term of protecting the interest ofcreditors as well.