Reconstruction Of The CEO System In China

With the development of large-scale socialized production, stringent requirements areneeded in the social division of labor. Large-scale socialized production requires moredetailed social division of labor. As an important system in the market economic system,model of corporate governance must be changed accordingly. The current model of corporategovernance is the "binary" model of corporate governance, namely the company’s propertyownership and management of the company the right to belong to the board of directors andmanagers. With the advent of the information society, the timeliness of the information anddecision-making efficiency of our current model of corporate governance raised newchallenges. In order to reduce the decision-making expense of unexpected situations andimprove the efficiency of decision-making and implementation, the CEO system acted as anew model of corporate governance came into being.CEO is the birthplace of professional managerial system of the United States since the1960s, based on the corporate governance reform of the traditional decision-making power ofcompany and manager’s right to day-to-day transaction processing model. CEO stands for theChief Executive Officer. Outside the traditional right of enterprise management, CEO havethe40%-50%of the rights transferred by board of directors. The transferred contents include some part of the decision-making power and personnel. CEO system’s advantage ofcompany’s administrative costs savings and enhance of decision-making efficiency liter havebeen accepted by most U.S. and European companies. The CEO system is increasinglybecoming more common corporate governance system in the world.Since the entry of WTO, China is getting closer and closer with other countries ineconomic, political and other aspects. Jin Huang, Ambow’s CEO once said:"We are living ina great era. China develops rapidly during this period of time. In the tides of globalization,China is at an unprecedented speed and confidence with the international standards andinternational integration. This is a historical opportunity to China and a worldwideopportunity provided by China." The import of CEO system becomes a two-way demandbetween China and the world.In China, CEO first appeared as an emerging concept of corporate governance in Internetcompanies. Later, Zhang Ruimin (Haier), Tao Jianxing (Chunlan), Chen Weirong (Konka) andNi Runfeng (Changhong) renamed their titles as CEO. CEO has become the most popular titleof company managers. It came to be a fashionable decorations pursued by cooperation.However, CEO system in China is developing without specific rights. Compared with thetraditional managers system, there is not much difference. In addition, despite the import ofthe word CEO, there is no import of incentives and monitoring mechanism matched with the CEO system. We should pay attention to the weakness of CEO-related system in China andalso solve the problem that there is no legal space for CEO system in China’s Company Law.This is not only the claim that no specific title of CEO manifested in China’s Company Law,but also point out that the specific division of the rights of the company’s board of directorsand managers in Cooperation Law has made the company difficult to adjust autonomy withindistribution of power mode, which meet with the CEO system. How to make the CEO systemefficient in our country and serve as an important role in China’s economic developmentbecomes the main question. We need to provide more space and efforts on supervision system,incentive and restriction mechanism to improve the system. Below is the specific method tosolve the problem.