A Study On The Legal Regulation Of Executive Compensation In State - Owned Listed Companies In China

The international financial crisis situation, the largest profit margins message occurs repeatedly, and the executive pay is not falling. The resulting discontent and anger, prompted some countries to a limit order. Our country also exists unreasonable phenomenon at a handsome salary. But at present our country legal science on executive pay is not attach importance to it, the related research basic in its infancy.The modern company ownership and management separation, a director or the general manager as the core of the senior management to grasp the actual control of the company. Executive compensation be play a role of motivation, reduce and eliminate the agent cost, achieve the basic means and methods of shareholders and executives as similar. Western executive compensation decisions paths through consists of mainly composed of independent directors on the board compensation committee to be responsible for the compensation plan, organize appraisal of executives decided to executive pay levels and structures. In view of the particularity of state-owned shares the investor of our country state-owned listed companies, the essence of the problem of executive compensation is based on "the people" as a representative of the shareholders and other stakeholders and interest distribution imbalance between senior executives of listed companies, on executive compensation regulation in our country on the one hand, draw lessons from foreign experience to introduce independent director system, set up a compensation committee implementation based decision-making executive compensation of listed companies, on the other hand, through the use of the power of system introduction of the state-owned assets supervision and administration institutions directly involved in.Our country is in the socialist market economic transition period, with the gradually deepening of the reform of state-owned enterprises, executive compensation problem become the key problem in state-owned listed companies governance. In 2002, China began to introduce, soe executives annual salary system is practised regulation executive pay may not exceed 12 times more than the worker of average wage. Since then, however, with the development of China’s economy and the increase of profit in state-owned enterprises, a number that has long been breakthrough. Under the background of financial crisis enterprise in trouble and sharp contrast between executives get huge pay is led to social public widely questioned, relevant departments from setting ＄2.8 million salary cap to further limit pay, adjust the executives and staff of the income gap. The cause of the public discontent is not only is dissatisfied with the related state executive compensation details, but because the mechanism behind the executive compensation is unreasonable, unfair. Measures of human resources and social security departments should not only to public sentiment temporary comfort, also should not only stay in the moral quality of executives high-paying difficult, we should take this opportunity to think about more reasonable norm mechanism of state-owned listed company executive pay.Content of this article is divided into four parts, the first chapter is the basic outline, the second chapter, through the analysis about the present situation of China’s listed company executive pay, inductive, review and arrange. The third chapter through the analysis of the pros and cons of countries such as Britain and America legal regulation practice experience, combined with the experience of China’s national conditions, compared system at home and abroad. The last chapter is mainly on the basis of the analysis of previous chapters to introduce, to our country the legal regulating executive pay recommendations and several legal thinking. Full text to our country existing state executive compensation legislation as the logical starting point, the research status of executive compensation, analyzing the lack of legal regulation, and from the perspective of executive compensation decision-making participation in terms of the executive compensation supervision results in excessive executive compensation, and then put forward measures for the improvement of executive pay is too high.