State-owned Commercial Banks Pay Incentives In The Context Of The Financial Crisis

The financial crisis that burst out in the United States has exerted a great impact on the global economy. The banking industry has suffered huge losses due to the crisis --- tens of thousands of banks went bankrupt. In such serious recession, some banks are still using executives incentive compensation program at the level of senior management as they did before, which is rather inappropriate to the current situation. Therefore, this thesis is to conduct a study on the compensation incentives of state-owned commercial banks against the backdrop of the global financial crisis. It points out that clarification of the relationship between compensation incentives system and corporate social responsibility is significant to the improvement of employee performance and the development of internal and external environment for the state-owned commercial banks.Based on the theory of compensation incentive, this thesis first analyzes the relationship between compensation incentive system and corporate social responsibility in terms of the two sources of incentives. Pay rise alone is not a sufficient incentive to the management. Proper pressure from evaluation on the management can help to achieve better incentive effects and to create a better internanal external environment for development. Then, comparison is made between foreign banks and state-owned commercial banks in terms of the advantages and disadvantages of their compensation incentive systems and the embodiment of social responsibility therein, so as to provide guidance to the improvement of the compensation incentive system of the state-owned commercial banks. The innovation of this paper is emphasis on the importance of undertaking the social responsibility in improving the compensation incentive system. Based on this, this thesis analyzes the strengths and weaknesses of the compensation incentive system in China's state-owned commercial banks and puts forward suggestions on establishing a compensation incentive system that is in line with China's national conditions...