Legal Issues On State-owned Enterprise Employee Compensation

The incentive problem is a vital difficulty facing China's state-owned enterprises in reforming. It would also be a huge breakthrough if the problem was successfully settled down. Thus, the study of the incentive problem of the state-owned enterprises has important theoretical significance and practical value. However, when we go deep into the study, we are facing with some legal problems or facts such as low level of overall wage, irrational wage-determined mechanism, extreme insufficiency of long-term incentive schemes, and etc.With a review of the status in quo of China's state-owned enterprises' wage system and foreign advanced practices, and through theoretical analysis and practical comparision, this article is trying to discuss about the solution of this issue and bring up a blue print of legal system covering stock incentive, minimum wage system, priority system and union negotiation system.