Research On The Managers' Compensation Mechanism Of State-owned Commercial Banks In China

As the basic incentive mechanism of commercial banks, the compensation system is directly related to the perfection of the company governance structure and the improvement of the performance of banks. At the present time, the state-owned commercial banks in china are engaging in the share system reform, compensation incentive is becoming the key of the Stated-Banks revolution. Therefore, the research on the managers' compensation mechanism of state-owned commercial banks in China has a great value in theoretical analysis and practical operation.Firstly, the paper reviews the related theories and studies—especially agency theories, modern manpower capital theories and wage theory of classical economics. Secondly, the paper indicates that the defects of property rights in Stated-Banks brought about the weakening of compensation incentive mechanism. In addition, the paper studies the regulation on compensation and non-pecuniary incomes in Stated-Banks as well as the affection on compensation incentive mechanism.Through the empirical analysis, it is found that the performance of the state-owned commercial banks doesn't have a prominent effect on the managers' compensation level. At last, the paper put forward some suggestions to the design of the compensation incentive in the state-owned commercial banks. It emphasizes that the managers' compensation should be improved and it should be strengthened that the relations between the compensation and the bank's performance.