The Proper And Rules Development Of State-owned-Enterprise's Executive Compensation

Under the finance crisis of the world 2008, basing the problem of executive compensation disclosed in the crisis, this article, including four chapters, mainly talks about the procedure of the executive compensation working-out and then gives some suggestions about it, as well as discussing its properness in short words.Chapter one points out the problem. With the SOE reforming deeply, the executive compensation of the SOE develops enormously, but the problem emerges in the financial storm. And then we mainly analyze the present data and the material from the newspaper, and conclude that these materials are very low level, even they conceal some problem. Obviously a lot of criticize and condemn have been threw down to the executive from the public, and the element of morality of the executive compensation is losing, this kind of compensation facing the properness crisis.In chapter two,we mainly introduce the executive compensation theory within three parts.Part one introduces the principle agent theory. This theory believes the different aim from the executive and the shareholder will cause the transaction cost, which the executive compensation aims to reduce.Part two introduces the goal of the compensation, achieving the biggest benefit of the corporation. Part three, we talk about construction and the working-out procedure from abroad, and then take the corporations of America and German as examples.In chapter three and four, we focus on the SOE's executive compensation of china. In chapter three, we mainly consider two problems in the compensation system;one is the phenomenon of the self-made compensation; the other is the lack of the transparence about the executive compensation including the result and the procedure.In chapter four, we point out it does not make any sense to control the sum of the executive compensation, but we should supervise the procedure.It is necessary to construct the executive compensation by the lead of the procedure justice, and enhance the quality of the information publishing in order to make the procedure more open. Furthermore, firstly, we suggest developing the corporation governance by the instruction of the procedural justice in three aspects as follows,(1)the independent directors;(2) strengthening the supervision committee;(3)the staff joining. Secondly, we suggest developing the supervision from the outside including two aspects, the judge interfering properly and the effective administration.