Design Of The Remuneration Packages Of The Professional Managers

With the increase of economic globalization and marketization in China, the professional manager market is coming into being piece by piece. More modern enterprises require professional manager to deal in and operation. Our country needs to bring up large numbers of managers who are competent for Modern Corporation.Nowadays there exist many misunderstanding about professional manager no matter in theory or in reality. Some people have no idea about the difference between manager and entrepreneur. Western scholars discuss and analyze it from different point of view, which could reveal us the function, effect and character of professional manager.It is the one of core contents of modern corporation theory that spirit up managers by salary. This thesis discussed the necessity of salary stimulation from the view of principal-agent theory and human capital property right. The two theories sustain the salary stimulation for manager.Based on the foregoing theory analysis, I summarize two modes of manager'scurrent salary incentive mechanism-annual salary system and executive stockoption(ESO), and then analyze their status in quo, how to put in practice andsubsistent problems. Hereby, I educe the compensatory mode of ESO-performance-vested options(PVO).I think the performance-vested option is a kind of suitable mode in China. So I design the mode that PVO combines respectively with Balanced Scorecard and Economic Value Added. This thesis introduces the concept and advantage of EVA. As a new conception different from traditional accountant and incentive action, EVA show its innovation and superiority on the four aspect: value index, management system, incentive system and ideology system. I think EVA is a feasible try. At last, I analyze if EVA and ESO is suitable for China as means of performance evaluation.The conclusion of this paper is that takes annual salary system and ESO as main mode, take EVA as assistant, which is the mode deserving questing for in manager's incentive mechanism for the future.Carrying out the EVA system will bring significance to the establishment and consummation of administrative structure of corporations...