Research On Senior Executive's Salary Incentive Mechanism Of Listed Company In He Nan

As core and soul of enterprises, the CEO play a key role in the firm performance as well as the sustainable development. It becomes an important issue for enterprises in particular for listed companies on the effective motivation of the CEO. Along with economic system reform of our country in recent years, the listed companies'salary incentive mechanism also has had great change, but has not formed the quite standard procedure. Therefore, discovering a salary mechanism of effective motivation to be the listed CEO has become the urgent matter.Firstly, this thesis deeply studies the relational theories,used massive statistical data to analyze present situation, the existence question as well as the incentive mechanism of the CEO pay of He Nan listed companies. It has carried on the relevant analysis from different angle to between the CEO pay and the different achievement target, finally obtains the conclusion:(1) The salary of the CEO has significant relevance relation with the enterprise achievement. It is not separated from relationship between the CEO pay and improvement of salary incentive measures which link up with the company achievement. (2) The salary of the CEO overall is still permissible in He Nan, it conforms to the local economy level of development, but the structure is unreasonable. The salary of he CEO mainly is consistent of the base pay and the bonus, other type income accounts for the proportion to be small, lack long-term incentive, the senior executives hold the number of stocks few in particular, hold zero or nearly not to 10,000 accounts for half of the companies.(3) It is not common to hold stocks for the senior executive in Henan listed companies, it indicates the long-term incentive measures still insufficiently consummated, the motive they held stocks was not to lie in the pursuit of the long-term development and enhancement of the core competitive power, instead it was to control and request for the company, perhaps there were other reasons. (4) The CEO pay has not remarkable relevant relation with the size of listed companies, it indicates the CEO who undertake the pressure and the risk greatly in large company don't gain high short-term income, it is disadvantageous to company's long-term development, and it is possible to change job for the CEO, even it is sacrifice the shareholder's benefit to obtain their profit for them.According to present situation of our country economic reform and relevant theories on the senior executive's salary incentive, the paper points out the yearly salary, the long-term incentive salary as well as other important item the senior executive's salary incentive mechanism aiming at the regional characteristics in He Nan and existing problems of senior executive's salary incentive mechanism in He Nan in recent years, and it is exploratory to pull in long-term incentive with restraint mechanism like equity option .Finally, the thesis illustrates briefly main conclusions, policies and suggestions, as well as forecast for the future.