Study On Senior Management's Salary Incentive Pattern Of Chinese Listed Companies

Since Modern enterprise system made the separation of corporate ownership and management so that there created the problem of commission agent. To link executive salary with company performance, is a common practice of western enterprise management to reflect the incentive and restraining mechanism, also to solve agency problem. The listed companies in China like the many modern enterprise in west, both are faced with agency problem because of separation of management and ownership. As most of China's listed companies are state-owned enterprises formerly, this change is an economic reform in itself, its core problem is how to contact the company managers that the interests of senior managers with the company owners that the interests of shareholders, to reach consensus.No doubt, motivation is the core issue, especially the issue of corporate senior managers'incentives is the most important. A good incentive mechanism can affect the value orientation of business executives, guide their commitment to create shareholder'value, improve work motivation and staff morale, the more important is the ability to create a human environment where business executives sustained efforts, joint efforts, and create more wealth, at the same time realize enterprise value maximization. So to describe the current situation of Chinese enterprises salary accurately, to find China's listed companies incentive problems, they can not only provide the basis to adjustment direction and objectives of policy in the future, but also provide the necessary theoretical basis of how to design managerial incentive model in micro-level enterprises.First, this paper presents the background, and the topics of the theoretical value and practical significance, also previous studies were reviewed, then, this paper uses the compositing theory, in agent cost theory, motivation system is important because of the separation between the suppliers of material capital and the suppliers of manpower capital. Because of dissymmetrical information and moral hazard and adverse-selection, the motivation system designed by principals should also restrict senior managers. senior managers are special human capital, and also this article based on the, human capital theory, demand theory, expectancy theory, and equity theory.Main part is dominated by empirical analysis, supplemented by the method of normative analysis, We collected the end of 2008 annual reports of listed companies as the main object of study data, through statistical analysis, summed up the current problems of senior managers salary in China listed companies:Pay level is still low; disparity between individual differences; obvious differences and regional differences in industry; executive compensation structure is not reasonable, encouragement for single; the overall proportion of executives holding less; and inadequate incentive structure of the system in China' listed companies. Then, in the basis of previous studies, and combined with the current media focus, had integrated propose incentive-based salary model of the senior managers'in China' listed companies, divided into four parts:annual salary; long-time incentive; supplementary insurance and benefits; other benefits. Through a detailed flow chart which explains the four parts of the composition, performance of annual salary in the salary is the key, long-term incentives of many enterprises that currently use incentives, that is, virtual stocks, insurance benefits in pension plans described in detail, pension plans and golden parachute plans, the main benefits that professional and social incentives, and introduced the generally accepted business method of calculating, Followed by discussion on the statistical classification of factors, proposed remuneration package under different modes.Finally, under the conditions of economic and social with Chinese characteristics, put forward constructive comments on senior managers'salary: First, improve the relevant legal and policy system; Second, to strengthen information disclosure system for listed companies; Third, improve and perfect the market of professional managers, give full play to market advantages of human resources; Fourth, strengthen the supervisory mechanism of listed construction company executives to form a scientific and rational assessment system, improve the mechanism; Five, actively play the role of the Remuneration Committee; Six, raise the level of senior managers pay our superiors.