The Study Of Salary Incentive Mechanism Based On Eva

30 years since reform and opening up, Chinese enterprise probes the trial being suitable to China's actual conditions salary payment incentive mechanism, and many times having been in progress unceasingly. Chinese enterprise successively has carried out contracting system, annual salary system and stock call-option incentive mechanism. The implementation of each pay incentives are strong with the characteristics of the times the company gave was injected new vitality. However, with the development of market economy, deepening reform of enterprises such Incentive Mechanism slowly revealed itself, impede the development of enterprises. Using EVA index to replace the tradition accountant profit to stimulate the machine-made accounting basis as salary payment is hot spot discussed by academic circles in recent years. EVA-based incentive pay has incomparable advantages. First, the EVA-based incentive pay can make the interests of operators and owners in line. Second, EVA-based remuneration system is more conducive to long-term incentive. Finally, the EVA-based pay incentives can optimize the investment ideas.Since January 1,2010,China's central enterprises start to implement the revised "central business executive performance evaluation Provisional Measures." A total of nearly 20,000 state-owned enterprises will implement economic value added (Economic Value Added) evaluation and assessment results to the central enterprises responsible compensation, appointment directly linked. The introduction of the new system speeds up the enterprise reform of pay incentives. Research and implement pay incentives based on EVA becomes urgent.This article from the following five aspects studies EVA-based salary incentives:The first part is an introduction. Described the motivation of the pay incentives based on EVA topics, and analyzes its significance, reviewed the recent progress in domestic and international payment incentives, and gave details of the contents of this paper.The second part is the theoretical basis for payment incentives. This section summarizes the theory of incentive pay at home and abroad, with emphasis on the role of the pay incentive mechanism.The third part is the implementation of EVA-based incentive pay necessity and feasibility analysis. First, an overview of our current course of development of pay incentive system and the existing shortcomings; Secondly, the analysis of EVA-based incentive pay advantage; Finally, EVA-based incentive pay is feasible in practice.The fourth part is the EVA-based incentive pay for the specific design. EVA bonus bank plan, including design objectives, design principles to be followed, as well as specific design elements. One EVA-based incentive pay specific design includes the design of EVA bonus scheme, EVA and the EVA bonus plan stock options, the combination of virtual design.The fifth part is the implementation of EVA-based incentive pay. The main content of this part is that solve the problems encountered in the practical application. First, elaborate implementation procedure of the EVA-based Incentive Mechanism. These include establishing EVA value management concept, anglicizing the corporate development strategy, establishing EVA pay accounting center, formulating EVA incentive pay plan and coordinating the implementation of the plan and effect of feedback. Finally, provide some suggestions for the problems encountered in the application.The EVA bonus plan combined with the virtual stock option compensation plan design is innovation of this paper. In the EVA bonus bank plan, managers have a large proportion of EVA bonus to set aside in the EVA bonus bank, the operator can only control a certain percentage of bonus EVA bank account, which in fact deprived of the right to govern bonus. This inevitably affects the enthusiasm of the operators. This article will EVA bonus plan with a virtual stock option plan design combined with full use of the advantages of the two programs to encourage operators to maximize the purpose.