Research On Senior Executives' Monetary Salary System Based On Value Added

Senior executives are the most precious scarce resources in enterprises. Encourage and restrict senior executives by means of salary system is the research hotspot in corporate governance field. Although the reform of senior executives' monetary salary system has realized some achievements, there are still many problems existing, for example, the salary gap is too large in different industries, the determination mechanism and adjustment mechanism of salary are dislocated, salary structure lean to be short-sighted and so on. In order to construct the senior executives'monetary salary system, which possesses internal consistency and external competitiveness as well as incentive effect, the value added theory is introduced into the dissertation. The senior executives'monetary salary system includes four aspects such as position analysis and appraisal, salary investigation and performance evaluation.The dissertation firstly explored the research background of monetary salary system and reviewed the literature of senior executives'salary both at home and abroad. On the base of exploration and summarization, the problem of senior executives' monetary salary system was put forward. Then, the dissertation discussed the theory of value added and salary system. They were the theoretical foundation of status analysis and process design. Thirdly, the dissertation analyzed listed manufacturing enterprises'present situation of value added distribution and senior executives'salary from the point of view of vertical analysis and transverse comparability. They were realistic basis of senior executives'monetary salary system based on value added. At last, the senior executives'monetary salary system based on value added, which abide by the design principles, was constructed. By combining actual cases of H Limited Company, the dissertation tested the scientific of senior executives'monetary salary system and analyzed the problems that exist in H Limited Company from the aspect of employees, shareholders and creditors according to evaluation result. To solve these problems, the dissertation put forward some policy suggestions such as increase employees'income moderately, pay attention to the construction of enterprise culture, enhance the productivity of capital, pay attention to the control of accounts receivable, strengthen concern about contingent and guarantee items and so on.The senior executives' monetary salary system based on value added provides reference for the determination of basic wage and merit pay in listed manufacturing enterprises. It not only effectively solves the problem existing in determination and regulation mechanism of senior executives'monetary salary, but also makes up the lack of traditional performance appraisal index system. And furthermore it optimizes the performance appraisal method.