The Research About The Incentives Of Executive Pay In State-owned Enterprise

As the economic system of our country goes through transition from traditional planned economy to socialist market economy, it is important to how to incentive executives of state-owned enterprise and arouse their enthusiasm. From the successful experience of overseas enterprise, we can find we may mainly adopt to pay incentives to executives of state-owned enterprise, market incentives and prestige incentives and so on for auxiliary incentive mechanism. But at present our country still does not have mature executive market and professional executive stratum, the market and the prestige lack the corresponding foundation on the encouragement of enterprise's executives, so the function is relatively limited. Therefore, proceeding from necessity and feasibility, this article mainly researches about the incentives of executive pay in state-owned enterprise, and does not consider the market incentive and reputation incentive.This article mainly uses the method of theoretical research and empirical research. First, propose the studied problem through combing documents: Although domestic and international have already studied regarding the executive pay for many years, but overseas carried it under the environment of perfect market economy ,while the environment of market economy system in our country environment is still imperfect. There are some disparities on adaptability of culture, system, ethics, etc. So, the foreign research can't be transplanted to incentive of executive pay in our country. At the same time domestic as a result of the sensitiveness of the pay, the relevant data are very difficult to obtain, the research about executive pay mainly concentrates on such respects as the influence factor, formulation principle, etc., and also does not deepen. Therefore, the research about the incentives of executive pay in state-owned enterprise is very meaningful.Then in view of the situations of our state-owned executive pay, such as the pay level is lower, the pay structure is unreasonable, the pay and the enterprise achievement break off relations ,the executive has not ensured after retiring and so on , under the principle of the pay and the achievement suspension hook, the owner benefits and the executive benefits unified, the short-term incentive and the long-term incentive unified, the article has constructed executive pay system of the state-owned enterprise .This system mainly includes four partial contents: annual pay income, stock option income, position expense income, retired safeguard income. Among them, the annual pay income divided into the basic annual pay and the risk annual pay, the position expense income is regulated by union determination cardinal number , the retired safeguard income uses the retired share plan, which has guaranteed executive's living standard after retiring, and impel the executive to work hard while to be on the job .The article finally analysis the stock option incentive of TCL Corporate's executive, and gives some reference about the state-owned enterprise carrying the stock option incentive and so on.This article has some innovation in the following aspects:First, the research technique uses the theoretical analysis and the empirical research,...