The Research On Compensation Structure And Encouragement Mechanism Of Executives In State-owned Enterprise Of Our Country

The compensation system is one of the most important factor of the enterprise management.Though the reform of economic system have being on for couple of years,the frame of modem enterprise system has roughly set up,executive compensation incentive system,especially in stated owned enterprise is still far away from the requirement of market economy. How to set up effective encouragement and restraint mechanism to arouse the enthusiasm of executive is an important problem.In the basis of summary of the theory of executive compensation, The thesis make a detailed research about the compensation structure and compensation encouragement mechanism,and bring to a solution to arranging the compensation structure and encouragement mechanism. Firstly,the paper make a detailed analysis about the situation of executive compensation and compensation structure in recent year base on the listed companies in china between 2005 to 2007.then the empirical study of executive compensation in Chinese listed companies in 2007 concentrates on compensation amount,compensation structure,and the incentive intensity of compensation with the statistic method of line regression,and try to find out the main factor effecting the executive compensation.From the conclusion,we discus the compensation system should includes two contents:the first is how to decide the combination of compensation structure.I think the compensation structure should be composed of basic compensation,incentive compensation and welfare. The basic compensation is design for meet the basic demand of executive, the incentive compensation is design for simulate executive made a high profit for company,and the welfare is a kind of combination allocation for keep executive's mind on work;The other is how to decide the level of the compensation system,which consist of how to decide the level of basic compensation,how to decide the incentive compensation and how to decide the long-term incentive compensation.The basic compensation is decided by the formula I_b=K₁^*K₂^*γ^*P,and the incentive compensation is decided by the formula I_r=(X—X^*)^*γ^*K₃.In the end,this paper brings forward notified suggestions accelerating to the anglicized result above.(1)Perfect the compensation encouragement mechanism system of executive;(2)Set up effective restriction mechanism of executive.(3) Perfect the others related system.