Medium And Long-Term Motivation Research For Central Enterprise

The establishment and improvement of motivation & restriction mechanisms for central enterprise will help to integrate agent and principal's benefits, to avoid agent's short-term behavior, and to keep and increase the value of state owned assets. The essay analyzed existing motivation problem of central enterprise on the basis of studing the motivation mechanisms from both domestic and foreign enterprises and principal-agent theory systematically in the terms of theory and practice, reviewed the motivation mechanism of China's central enterprises history and current status.The essay pointed out: the current motivation for central enterprise is short of long-term motivation and corresponding restriction, which makes agent pay more attention to short-term benefits than long-term sustainable development. The essay focused on and studied the specific implementation method of medium and long-term motivation for central enterprises, and gave the general implementation methods and procedures.The essay also answered how to improve the corporate governance structure of central enterprises, optimize the selection mechanism, strengthen the assessment, and improve the supervision mechanism and other issues.The essay proposed five medium and long-term motivation methods for central enterprise, namely: term motivation, EVA motivation, virtual stock option, pension plan and company pension. The essay also studied that virtual stock option would be affected by industry, region, level of education, age and other factors .Finally, to reduce the above-mentioned factors' influence by establishing a weighted summation model to ascertain the value of correction factor b. The score of each factor was adopted expert marking method to get, and the weight was calculated from AHP model.