The Research On Compensation Incentive Of Professional Executive Base On Agent Theory

Along with market competition intensified day-by-day, social division of labor unceasing expanded and modern enterprise system established, professional executives become gradually important impelling forces of enterprises and society development. Professional executive is one kind of scarce social resources and special human capital. Its value increases unceasingly along with social increasing demand, because it can't be taken place of. If there are no high quality professional executive groups, it is impossible to establish the modern enterprise, and it is difficult to establish truly modern enterprise system. As a result of historical reasons, macroscopic environment in our country that professional executive market faced is insufficient optimized; many enterprises' deficient or unreasonable system is also difficult to cater to the need of professional executive market development, in particular compensation system. Because the foundational job need of professional executive is material demand, if it is difficult to be implemented of enterprise's compensation incentive system, according to agent theory, professional executive's individual goal and principal's goal can't be consistent, thus agent cost increase. This research firstly carries on summary of domestic and foreign researches on professional executive, then analyzes factors that influence professional executive compensation, including macroscopic factors and microscopic factors and proposes professional executive compensation incentive model, this model can well explain relation and mutual action mechanism between professional executive compensation incentive, compensation degree of satisfaction and job performance and relative influence factors on compensation incentive. According to company's professional executive's compensation data from Shenzhen Stock Exchange, we do empirical research and analysis. We discover the relation between professional executive average compensation and director compensation, company performance, company scale, the proportion of state-owned stock accounted for the total capital stock, and summary the condition on stock-owned of professional executive. Finally, aiming for discovering questions from empirical research of professional executive compensation as well as other actual existing questions, we put forward some rational proposals.