Remuneration Committee Corporate Governance In China

Company directorate is an important part of corporate governance. As the economic situation develops and peoples' recognition advance, directorate changes accordingly. In the past the power of company governance centralized in the internal personnel of directorate. All members in the directorate were internal persons; but now independent directors are introduced into directorate, and more specialized committees which are held by independent directors are set up in the directorate. Governance power is decentralized. Because directors and senior managers are all directorate members or they can exert material influence to the decision of directorate, so they could set their own compensation by means of their power, and the trend of the increase of their compensation is in the rise, so the right of establishing senior managers' compensation is moved out too. After the decentralization of power, the compensation establishing power is attributed to Remuneration Committee which is a sub-organization of directorate. For the members of remuneration committee are all independent directors, the trouble of the unfairness of senior managers' high compensation with the other employees can be solved.In Anglo-American countries, the setup and running of remuneration committee are maturate, our countries only mentioned it in The standard of corporate governance in public companies, and suggested that listed companies set up remuneration committee. My dissertation contains 4 parts. In the first part I give a general introduction about the remuneration committee. In the second part, I make an investigation of the remuneration committees of the public companies in China. The result is not as that is thought. There are many defects in the performance of remuneration committee. The third part is the conclusion and suggestions of mine. I raise my own view points in the betterment of those defects. In the final part, I write...