The Research On Managers' Compensation-incentive Mechanism In Our Country's Commercial Banks

Human society is composed by people, and economic activities is participated in by people. Therefore, testing the economic mechanism or rules is well or not need to see if it can provide intrinsic motivation to make people working hard and get high quality grades. And if the enterprise managers can make effective decision which is good to their organization and produce more efficiently (Guoqiang Tian,2000). As an important part of the financial sector, commercial bank plays an important role in the social and economic's development. Compensation-incentive Mechanism is an integral part of the bank management mechanism. Under the situation of the financial globalization, for our country's commercial banks, how to arouse the managers' enthusiasm as strong as possible and how to establish an scientific, reasonable and efficient compensation incentive mechanism has very important practical significance. Reasonable use of compensation incentive mechanism can not only stimulate the managers'greater enthusiasm and initiative, but also can attract and retain the management team with strong ability and high quality, and improves the comprehensive competitiveness of the banks. Therefore, establishing and perfecting the managers'compensation-incentive mechanism has an important practical significance for the development of commercial banks.This paper aims to optimize the managers'compensation-incentive mechanism in Chinese commercial banks by the analysis of the theory of the compensation incentive mechanism and the experience of western developed countries. The first step is to review the domestic and foreign literatures, and make a comment, then determine this research'goal. In the second chapter, several concepts in this paper have been defined and illustrate the theoretical foundation. The third part is about the international comparison of the managers' compensation-incentive mechanism in commercial banks and some enlightenment. Mainly introduce the managers' compensation-incentive mechanism in commercial banks which the United States, Germany and Japan takes, then the forth part mainly analysis the current situation of the managers' compensation-incentive mechanism in our country' commercial banks. Then the chapter 5 frist analyzes the relationship between shareholders and executives by Principal-agent model and Reputation model .And then further validates present situation and the existing problems of the managers' compensation-incentive mechanism in our country's commercial banks by empirical analysis, which were summed up in the front chapers, and puts forward that we should establish and perfect a manager market.Finally, according to the advanced idea of the foreign commercial banks and our system background, and based upon the principle of optimizing the banks'performance and controlling the banks'risk, this paper make some suggestions to the government, commercial banks and executives to perfect the managers' compensation incentive mechanism in our commercial banks.