Reasonable Path Of China’s State-Owned Enterprise Executive Compensation Legal Regulation

The state-owned enterprises are the pillars of our national economy, solve the problem ofstate-owned enterprises, solved the main contradiction of the development of Chineseenterprises. State-owned enterprise (or state-owned enterprises, the central enterprises), bytheir nature, but also business, it has the common characteristics of the enterprises of generalcommercial matters, but also has its own unique characteristics different from the generalcommercial matters enterprises. In the world, corporate executive pay has been the focus ofboth scholars and the general public are that the existing executive pay system could beimproved. In China, because of the unique national conditions, state-owned enterprises isChina’s leading state-owned enterprises are concentrated in the communications, mining,electricity, water, a matter of national lifeline of the industry, therefore, to solve China’sstate-owned executive pay legal regulation is particularly important. Solve the problem ofstate-owned executive compensation, an effective way to deduce a reasonable way of legalregulation of executive pay of state-owned enterprises on the basis of the regulation system ofordinary corporate executive pay, combined with the inherent characteristics of thestate-owned enterprises.At the same time, the legal regulation of state-owned executive pay can not be separatedfrom the reform of state-owned enterprises. If state-owned enterprises can not get rid of theshadow of the planned economy, can not build a reasonable system of governance ofstate-owned enterprises, then, on the basis of legal regulation of executive compensation instate-owned enterprises, is no different from China’s late Qing repair law, advanced legaltechnology forced above the graft backward feudal system, end up in vain. Therefore, thisarticle has broken through the regulation of a single corporate executive compensation, from abroader perspective, combined with the reform of Chinese state-owned enterprises,state-owned enterprise corporate governance system was established to study the legalregulation of executive compensation in Chinese state-owned enterprises.The full text is divided into three parts, including introduction, body and summary ofthree parts.Introduction leads to the theme of the paper to be discussed with the community isgenerally concerned about the state-owned executive pay is extremely high, that is, how can a reasonable regulation of executive compensation of state-owned enterprises.The body part is divided into the following chapters:An overview of the first chapter. The scope of state-owned enterprises, the scope of theexecutives clearly defined, our executive compensation.The basic theory OF The second chapter is about the regulation of state-owned executivecompensation law. Related theory for the principal-agent theory, human capital theory and the"economic man" concept, the basic theory is the theoretical premise of our study ofstate-owned enterprises on executive pay.Chapter III of the executive compensation system for state-owned information andreference. Includes two aspects, First Commercial executives pay legal regulation of thesituation, from which you can get a glimpse into the general path of the regulation ofexecutive compensation of state-owned enterprises; executive compensation and legalregulation of state-owned enterprises in the West and Reference, which the West theclassification of state regulatory system is worth learning.The fourth chapter is the thinking of China’s state-owned executive pay legal regulation.The chapter is the core part of this paper. Mainly consists of two parts: First, the status quo ofChina’s state-owned executive pay legal regulation, analysis of our current legal system on thestate-owned executive compensation, the specific content of the regulation and the problems;on China’s state-owned enterprises executives remuneration of legal regulation system ofconcrete thinking, rational regulatory system for China’s state-owned enterprises executivesremuneration shall include the the following measures:(1) Building the Chinese to the boardof directors of state-owned enterprises management mode, which is the most critical step, isalso the other measures able to play a role the premise;(2) a reasonable state-owned executivecompensation decision-making power allocation, the state-owned enterprises should establisha remuneration committee responsible for drafting the executive director, staff director andsenior management personnel remuneration. Right to decide the allocation of state-ownedasset management companies and non-competitive state-owned companies handed over to theSASAC. The general state-owned company submitted to the shareholders’ meeting. Powerand discretion of the formulation of the independent directors’ remuneration is determined bythe SAC or the shareholders.(3) the fully state-owned executive compensation disclosure.Requires the disclosure should be more fully the basis of the original, should not only disclosethe remuneration of all directors and senior management, and shall disclose the specific composition of their pay. Disclosure of the main body responsible for the objectivity andindependence of the Board of Directors, the Remuneration Committee disclosure.(4) theapplication of judicial review, judicial review should play its due role in the specific reviewshould distinguish between the competitive state-owned enterprises and non-competitivestate-owned enterprises on their executive pay to the application of different evaluationcriteria.The conclusion of the above summary of induction.