Compensation Inspiring System Research Based On EVA For Higher Managers In BF Corporation

With the increase of economic marketinization in China, more and more enterprises require principle-agent to manage the enterprises. Setting up rational inspiring compensation system to inspire the higher managers and to unleash enough their value of human capital is an important problem many enterprises are facing.At fist, this paper clarify necesity and significance of researching the inspiring compensation to higher manager, bring the index EVA of representing stockholder-value-maximization into inspiring compensation to research. Then systematically review civil and foreign inspiring compensation theories and related works of the relations between compensation and manager's performance. And then, the paper introduces the fundamental of EVA, discusses simply the calculating method and accounting adjustment, explains the compensation inspiring theory based on EVA. The part of empirical study is about BF Corporation. Above all, the paper introduces the basic statue, analyses the defect of inspiring compensation system what BF Corporation is adopting, put forward to the goals of compensation reform. Then, the paper specifically discusses the designing theory of compensation inspiring system based on EVA and designs the compensation of higher managers in BF Corporation. At the same time, simply estimate the higher manager's compensation based on Corporation financial statistics of 2001-2005, then compare the effect of the two inspiring modes and indicate the advantage of the compensation inspiring system based on EVA.This thesis analyses, and designs the higher managers'compensation system of civil enterprises in large scale. The result of the thesis may provide some valuable bases for the designation of salary system of similar enterprises.