Research On The Incentive And Restriction Problems Of Executive

Under today's new economy, enterprise's executive becomes the key factor of promoting its development day by day. The separation of ownership and the power of management cause the executive to produce " moral hazard behaviors", in order to realize his own interests maximization goal, the owner must design a kind of effectual incentive and restriction mechanism to coordinate interests goal difference of both sides and impel the executive to work for owner benefit goal.This article firstly introduced the basis of choose the topic, domestic and international research, and the structure arrangement in the introduction. On the base of Chinese corperation government structure status, it points out that executive's sharing surplus and bearing corresponding risk is the key of executive incentive and restriction.At the same time, control power mechanism can also act on executive incentive and restriction.In the second chapter, the author pointed out the certainty of construction of incentive and restriction mechanism by analysing foreign and Chinese corperation government structure.The third chapter firstly analyzes the corresponding theory and model, then points out that executive's sharing surplus and bearing corresponding risk is the key of executive incentive and restriction. So surplus proportion is the core of executive incentivation system designation aswell as restriction mechanism can impel the executive to give up "moral hazard behaviors" by improving its costs.Lastly the paper analyzes factors which influence incentivation effect and makes some advice on how to incentive and restrict enterprise's executive.