Study On The Incentive Mechanism For Stated Owned Enterprise Manager

Setting up effective incentive mechanism to manager is very important for elevating efficiency of manager of stated owned enterprises and achieving stable preservation and increment of stated owned asset. For a long time, income of the manager of stated owned enterprises is not high, so during the period of changing from planned economy to market economy, the tendency of "economy human" selfishness is very obvious. In the game between manger of stated owned enterprises and consignor of stated owned asset-own-stated asset managing department, it is inevitable for manager to achieve own utility maximum in price of damaging benefit of consignor. So effective incentive mechanism of manager is not only to achieve the aim of consignor of stated owned asset to abase agency cost produced by adverse selection of manager, but also to achieve motive of own utility maximum.This paper discusses how to set up effective mechanism for manager.Firstly, this paper discusses the meaning of setting up incentive mechanism for stated owned enterprise manager.Secondly, it analysis the questions and shortages of the state owned enterprise manager incentive in our country, and get the conclusion that it should strengthen the incentive for the state owned enterprise manager.In the end, it points out the countermeasures to the state owned enterprise manager incentive, including annual salary, welfare, subsidy, stock option, and inspirit incentive.