| Compensation incentive is an important component of the governance structure of commercial banks. Reasonable compensation system can not only inspire the staff to work actively, but also raise the operating performance of the bank. Based on China Minsheng Bank staff compensation incentive system, we discussed the validity of compensation system, the relationship and degree of the relationship between its operating performance and compensation system. It is hoped that these can give a view for joint-equity commercial Bank to develop a reasonable system of compensation incentive.In this paper, we defined the concept of compensation and compensation incentive. After that, the mechanism of compensation incentive was analyzed from two aspects:the reasonable compensation gap and companies benefits linked to personal benefits. And then we introduced a classification of the compensation incentive, including compensation incentive and short-term compensation. Yet we recommend the history, the compensation status and the incentive status quo of China Minsheng Bank. The most important part of this paper was the empirical tests, which analyses the impact on the operating performance by China Minsheng Bank's compensation incentive. We selected the compensation of banks as a variable. At first, we took a simple descriptive analysis between its operating performance and compensation system. And then correlation analysis and stepwise regression analysis carried through variables and explanatory variables. The result shows that the reward level of Minsheng Bank is closely associated with business performance and the scale of bank, therefore the reward excitation mechanism is efficiency. Nevertheless, there is still some insufficiency that the exclusive managers' reward is not associated closely enough with the business risk of Minsheng Bank.At last, we obtained some of the China Minsheng Bank's compensation system to learn, also proposed the recommendation to joint-equity commercial bank. |
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