The Research On Eva-based Salary Incentive System Applied In Listed Companies

The SASAC promulgated an“interim measures for performance evaluation ofmanagers in charge of the central enterprises”in the end of 2009, decided toimplement EVA indicator as the core of performance evaluation system from January1, 2010, This symbolized the time of value-based management for central enterpriseshas come.In order to implement the EVA-based performance evaluation systemeffectively, EVA-based salary incentive system must be established. Listedcompanies are the study object in this thesis; the author discussed EVA-based salaryincentive system applied in China.Based on Value-Based Management theory,principal-agent theory, performanceevaluation theory and incentive theory,this article firstly analysis the current situationand existing problems of salary incentive system to managers in Chineselisted-companies,providing new ideas for salary incentive.Secondly,studiedcalculation principle and accounting adjusting proceeding of EVA,then discussed theexisting difficulties about calculation of EVA in listed company,and on thisbasis,analysised the corresponding solutions.Thirdly,compared traditional indicatorswith EVA to highlight the advantage of EVA,meanwhile,calculated value of EVAfrom 2008 to 2010 of 100 listed companies in Shanghai stock exchange market. Basedon this,the thesis studied the EVA’s validity in measuring corporation performancethrough qualitative analysis and quantitative analysis methods,these methods includecorrelation regression and comparative analysis.At last,designed the EVA-basedsalary incentive system,including bank bonus plan and stock option plan, On the basisof the existing stock option plan,the thesis proposed ideas for improvement,thenanalysised the improved significance and precautions,meanwhile, combined with caseto test the applicability of the model.