Studies On The Inequality Income In State-owned Monopoly Enterprises

After China’s reform and opening up more than30years, the per capita income of the residents in our country increases dramatically and living standards have improved significantly. However, with the growth of the national economy, unfair wealth distribution in different social groups gradually highlights, which has become the focus of attention, especially the day price salary of some state-owned monopoly executives causes social public widely query and resentment.The domestic existing literature research the problem of high income in state-owned monopoly industries from the observed data of industry income distribution gap. They point out that it’s the administrative monopoly leading to state-owned monopoly industry high income. This paper aims to the internal unfair distribution problems of state-owned monopoly enterprise, which part of the monopoly executive’s high income. We believe that high profit doesn’t mean higher income, which needs some "catalyst". The "catalyst" is the deformity of the corporate governance structure.This paper will apply corporate governance theory to analyze the unfair income distribution in our country state-owned monopoly enterprise, and decompose the dangers of deformed company structure hidden in the back of income gap phenomena. The ineffective "separation of structure of board of directors, board of supervisors, and executive causes the executive and board (executive) behavior lack of effective supervision and restraint, and form management interest group with the increasing serious problems of insider control, which eventually led to the state-owned asset returns possessed and divided up by minorities, violating the social justice and that all the people and the country as state-owned enterprise owners shall enjoy the state-owned capital of remuneration.First of all, the paper reviews the relevant articles and researches on state-owned monopoly enterprises income distribution, which introduces the point of view of the researchers dug into the income distribution in state-owned monopoly enterprises, and finally gives the perspective view of this paper——corporate governance, and then summarize the management theory. After that, the paper analyses the current situation of unfair income distribution in state-owned monopoly enterprise, which can be describe in two aspects:in one hand, the dividend ratio given to the country of the state-owned monopoly enterprises is too low; on the other internal worker income gap in state-owned monopoly enterprise is too large.Secondly, based on the analysis framework of governance theory, this paper researches the causes of the state-owned monopoly enterprise unfair distribution. The specific reason perform in five aspects:First, it is lack of property right constraints within the income distribution system of the state-owned monopoly enterprises; Second, the independent distribution permissions of the manager is too large, lacking of supervision and restraint mechanism; Third, insider control question is serious, forming management interest groups; Fourth, the incentive mechanism is improper, performance incentives evolving into "dividend incentives"; Fifth, the government to a monopoly of the income distribution regulation is slack. In short, the company governance mechanism is closely related with the income distribution, good corporate governance mechanism can promote the realization of the fair income distribution. However, due to the imperfect internal and external governance mechanism of the state-owned monopoly enterprise, the manager lack of effective market supervision and restraint, even collude with government officials, board of directors and board of supervisors, forming management interest group. They actually control the distribution system and distort income distribution system, adding to state-owned monopoly enterprise income inequality.Finally, the paper proposes the reform suggestions to solve state-owned monopoly enterprise unfair income distribution problems with perfecting enterprise internal and external supervision and restraint mechanism, as well as improving the enterprise internal incentive mechanism. The core of company governance lies in establishing mechanism that the board of directors, supervisors and executives balance each other by the ways of supervision and restraint, the function failure of any party can cause two other party power expansions, which may infringe upon the interests of the shareholders and stakeholders. In view of the state-owned monopoly company belongs to all people, so it is significant to improve the enterprise internal and external supervision and restraint mechanism in order to counter a few powers of the insiders and safeguard the public interest of the whole society. In addition, undeserved incentive mechanism will seriously influence the constraint mechanism function, thus it is imminent to improve the state-owned enterprise internal incentive mechanism. When regulating and improving the enterprise operator’s salary system, a scientific incentive mechanism shall also promote the rationalization of enterprise internal distribution system simultaneously, and narrow income gap between the operators and ordinary workers, alleviating the enterprise internal unfair distribution conflict.