Research On The Compensation Distribution System Of State-owned Commercial Banks

China's full liberalization of financial markets means that our competition in financial industry further increase. The state-owned commercial banks will face double competition from foreign banks and domestic joint-stock banks. Compared to state-owned commercial banks, foreign banks operate in regulated market environment, with strong capital and a stronger ability to avoid risks, win the profits and have the development of innovative capacity. With the "native" strategy of the foreign banks, it is bound to use their generous salaries to snatch the core managers of the state-owned commercial banks. it can be called " the second talents aggression" after the new opened domestic joint-stock commercial banks snatch talents. In the face of this situation, accelerating the reform of the income distribution mechanism, strengthening the pay system design, improving the incentive and restraint mechanisms, mobilizing the enthusiasm of the staff and strengthening solidarity and cohesion of staff, have become more urgent.Compensation is one of the important parts of incentive mechanismin bank. It plays a significant role in such aspects as determining job satisfaction,motivating the staff and strengthening cohesion of the bank. This article is written for the research object with the compensation distribution system of state-owned commercial banks. We analyze the currently pay distribution of state-owned commercial banks and the existing problems. We learn domestic and foreign advanced practice in the field of compensation,and put forward our own proposals about the state-owned commercial banks compensation distribution system. This article is concluded that, with the building of compensation distribution system of State-owned commercial banks, it is important to take the development strategy of bank as the starting point. In the basis of adequate market research, we build the pay system including the basic salary, variable pay, welfare and long-term incentive. In the design of the compensation distribution system , it is necessary to distinguish the general staff, managers and core talents of business lines, for identifying the proportion of pay.The basic salary should expand space for staff promotion on the grounds of jobs, skills, wages, salaries capacity, broad-banding salary. Variable pay should motivate staff with outstanding contributions, and emphasize the contribution of the team and the business lines according to the development strategies, branches should have full freedom. the form of well-being need to continuously innovate. In the long-term incentive ,we should distinguish managers and give pension, stock, options or other long-term incentive and take career design of managers seriously and encourage long-term contribution and establish a competitive compensation distribution system.The research methods adopted here are theoretical analysis and case study.Article by six components:1, Foreword. Among the topics on the background and significance of the respective topics, and explains. And this study ideas and methods.2, Literature review. Research carried out at home and abroad have been reviewed to analyze their research methods and identify the advantages and disadvantages to determine the focus of this article.3, The theoretical basis.Introduce the foreign theoretical research on compensation. From the perspective of economics and management we analyze and compare with this theories.4, The advanced model of the distribution of pay. Learn and study more mature Foreign pay management methods.5, The currently pay distribution of state-owned commercial banks and the existing problems. we make a summary of China's commercial banks currently compensation distribution system. And we analyze the existing problems about compensation from the six aspects.6,The improvement of compensation distribution system. According to the above programs, from internal consistency and external competitiveness, the reasonable measure of employee contribution, Reasonable compensation distribution system design and contant pay management, we take our own policy recommendations to improve the compensation distribution system of state-owned commercial banks.