Study On Optimization Of The Post Compensation Solution Of General Managers In Subsidiaries Of CT Group

Six ministries and commissions of the State (Council) jointly issued <guidance on further standardization of the compensation management of executives in central state-owned enterprises> on September 10th, 2009 to further regulate the compensations of executives in central state-owned enterprises. The performance assessment and incentive pay of executives in central state-owned enterprises shall be established synthetically combined with national conditions of China, as well as following a realistic and pragmatic approach and via the use of the professional knowledge of performance assessment and incentive pay. In recent years, the salary mechanism of executives of state-owned enterprises, especially central state-owned enterprises has become the focus of public attention with the events such as state-owned"exorbitant salaries of Ping An senior managers". At present, the economic aggregate of China has steadily been among world's top three, and in 2009 global top 500 companies, there have been more than thirty Chinese enterprises, most of which are central state-owned enterprises. This is important to the study on the incentive pay mechanism of executives in central state-owned enterprises.This paper introduced the background of the selected topic and study objectives and significance and reviewed the relevant policies systematically based on the present status of the incentive pay policies of general managers in subsidiaries of CT group. The basic information about CT group and present situation of the incentive pay of general managers in subsidiaries were also depicted, in addition, the existent problems were analyzed in detail. Moreover, optimized solutions of the original compensation policies were proposed according to the national policies, CT group strategy, and problems in the implementation of the original compensation policies. The enterprise classification, salary calculation method, operational performance assessment of general managers and so on were optimized additionally. Furthermore, the problems such as the medium- and long-term incentives, position-related consumption and part-time remuneration and deferred compensation were discussed.