Research Of Professional Executive Compensation Incentive Mechanism In China

This paper mainly aims to study how to provide the compensation incentive for professional executive in China. Firstly, some related theories are introduced to indicate why to do and how to do on the whole.Secondly, by analyzing the present conditions of the professional executive's compensation incentive in China, The thesis discussed the necessity of compensation stimulation. Then the paper emphasizes on the two models-annual salary system and stock incentive project, and explains the practices in China, the advantages and disadvantages of the models. Basing on the analysis, some feasible advices are put forward for our practice. Original ideas of this paper mainly include two aspects, one is to innovatively design the promoting pattern of annual-salary system based on EVA, another is to educe new executive stock option (ESO) model which combines certain market index.Besides the two models, the paper briefs on other compensation incentive's patterns, such as position consume project and security income project, so that a complete compensation system for the professional managers is set up.