Salary Of Senior Executives Of SMEs In China Design

As China's socialist market economy establishment and improvement of small and medium enterprises face increasing fierce market competition, business competition in the final analysis is the talent competition, has extensive senior management of human capital as the company's "core competencies", their ability levels, to the actual performance or not, and the overall operating conditions of the enterprise the key factors. The establishment of modern enterprise system, allows businesses and ownership of operating rights of the separation, because of information asymmetry, the principal the agent's behavior Jian Du, inevitably the cause of the increase in agency costs.Therefore suitable for small and medium enterprises to design a scientific and reasonable executive compensation system so that the personal interests of executives and companies linked to long-term interests, the maximum incentive to executives to work to promote the rapid development of SMEs become necessary.This article first to defines the scope of the SMEs, specifically the scope of study on the concept of pay-related brief. Second review of remuneration of senior executives associated with the theory. Focused on the current top management of SMEs in China pay problems, and the reasons behind the problem is analyzed. Finally, the purpose and principles of compensation design combined with the actual situation of SMEs, reference state-owned enterprises and listed companies mature executive pay model.From the time (long-term incentive compensation and short-term incentive compensation) risk (fixed pay and variable pay ratio) levels (the absolute number of salary) made three point start pay for executives of SMEs in the design mode. Long-term incentives and short-term incentives under the principle of combining, this article focuses on the annual salary system and the virtual stock. According to the needs of executives, a comprehensive benefits program for executives choose.