The Study Of Long-term Incentive Mechanism Based On Fixed-term Appointment System

Enterprise managers play important role in enterprise developing, so the long-term and effective incentive restraint to them beforehand is rather important. However, the long-term incentive mechanism that is popular in western countries now is lack of ripe marketing environment in ChinaThe long-term incentive based on fixed-term appointment system to enterprise managers has many advantages. However, there are only ordinary studies about eidos, principles in many papers. No doubt, it is the length of the term of office that is the most important aspect in the fixed-term appointment system as long-term incentive mechanism, and that is meaningful for restraining the short-term action of enterprise managers. However, it is a pity that many studies haven't gave profound analysis about it.The main creative points of this thesis: it not only establishes the long-term incentive model of fixed-term appointment system about the length of term originally, but also gives qualitative analysis to the best length of term of enterprise managers. The thesis pays much attention to the following 4 aspects:1. Based on the analysis and comparison to all kinds of long-term incentive mechanism now, it claims every requirement to effective and long-term incentive mechanism.2. Explain fixed-term appointment system itself first, then analyze the long-term restraint advantages of it and discuss every factor that will affect the long-term incentive to business managers, especially the qualitative requirement to the reasonable length of term.3. According to the theory of agency by agreement and the reasonable hypothesis to other factors, the thesis establishes the long-term incentive model of fixed-term appointment system about length of term, and gives qualitative analysis to the best length of term. By putting stability and activity factors of enterprise and reputation factor of business managers into simple model, it is found that the best length of term of enterprise managers is conditioned by the span of time of long-term strategic target of enterprise profoundly; by the restraint of business stability and activity, managers of enterprises can do nothing but shorten the span of term of managers to get the second best condition; due to enterprise managers' consideration for future reputation, the owners of business can shorten the span of term of them further, but don't affect to restrain their short-term action.4. Analyze the term examination system of SASAC to those head of State-owned Enterprises, and give some suggestions to the term check-up system to the head of Telecommunication Operation Enterprises.