Research On Factors And Incentive Effect Of Executive Pay

The key problem corporate governance is necessary to solve is that using theeffective incentive and restraint method to make agents of the company management tomake the decision and behavior consistent with the interests of shareholders, so one of theimportant methods is to provide management with the proper forms of compensationincentive. Studying of executive compensation incentive effect has the important theoryand the practical significance for enhancing the efficiency of whole social economicresources allocation.The thesis studies from executives pay of the state-owned enterprises status,reviewing of the state-owned enterprise in chongqing salary incentive system change, onthe basis of the statistical analysis of the present situation of the chongqing executive payincentive, summarizing the state-owned enterprise in chongqing salary incentive of8items characteristics and existing3insufficient places. According to the state-ownedenterprise in chongqing salary incentive present situation and characteristics, combinedwith theoretical analysis, the paper propose the research hypotheses based on threeaspects of the relations: executive pay with executives control、agency cost and corporateperformance, set models and empirical tests to examine the state-owned enterprise inchongqing executive pay incentive effect. This paper’s studies have realistic meanings,because excellent executives salary incentive mechanism is more effective in improvingthe efficiency of state-owned assets’ management in chongqing, promote the reform ofstate-owned enterprises in chongqing, improve the comprehensive competitiveness andperformance of state-owned enterprise in chongqing, further promote the economicadjustment of layout structure and the transformation of economic growth mode.