Research On The Alternative Relations Of Monetary Compensation And Choices Perks

As China’s economy is in transition, the whole society faces a huge change, because the policy environment, economic environment, social culture and enterprise internal conditions, and many other factors change, some extent of corporate governance structure has the certain effect. This paper is based on the management compensation contracts. Compensation contracts in China are to be further research. Compensation contracts are the enterprise management structure of an important aspect. Although at present many research management compensation of the literature, but from the transformation of economic structure of company treatment itself to understand compensation contracts research is still very rare. Therefore, this article to inspect the country management effectiveness of resource allocation system provides a significant perspective.The behavior of executives has important influence to the value of the company. But in front of the information asymmetry conditions, all kinds of agency problems are common. How to sign a management incentive contracts, enhance the executives and stakeholders of consistency, in order to reduce the agency cost in corporate governance, is a very important proposition. When incentive contracts are more than one, different compensation contracts selection and combination of the question will set before the company. The company management incentive contracts are a series of contract of the set. In this combination, monetary compensation (including salary, bonus plan), choices perks, promotion all exist. This article incorporated monetary compensation, equity percentage and choices perks into the "management motivation" frame. According the trend of monetary compensation and choices perks, this paper found that in time dynamic axis, the structure of salary of the listed companies in China tend to be rational, dominant salary sustained growth, the hidden salary got some control; With property right nature as the foundation, in the state-owned enterprise, the managerial stockholding and choices perks were less than non-state-owned enterprises; To feature in eastern coastal areas listed company management monetary compensation, the managerial stockholding are greater than the choices perks eastern coastal in areas listed companies. This shows that compared with the listed companies of the eastern coastal area, the listed companies of the eastern coastal area got strength; according to industry attribute, monetary compensation and the managerial stockholding of competitive industry, are greater than the choices perks in competitive industries. This shows that incentive contracts of competitive industry is more intense, the difference is not obvious.Through the different time, different region, the nature of property right and profession attribute, this article tries to understand the change trend and the relationship among the monetary compensation management and choices perks. This article incorporated monetary compensation, equity percentage and choices perks into the "management motivation" frame, contracts cost changes incentive contract of choice.More importantly, the monetary compensation and choices perks alternative relations and marketization level is significant. From the time dynamic axis’ point of view, management compensation and choices perks currency substitute relationship and marketization level have significant positive correlation, that is, with the improvement of marketization level, the trade-off between more apparent. From the point of view of the nature of property right for monetary compensation management and choices perks and the market level, instead of the relationship between the level of relevance, than non-state-owned enterprises state-owned enterprise even more significant. From the Angle of regional differences, for monetary compensation management and choices perks and the market level, instead of the relationship between the level of the correlation between eastern coastal areas than the eastern coastal areas even more significant. From the nature of the industry point of view, the monetary compensation and choices perks management and marketization level instead of the relationship between the relevance of the level, the competitive industry competitive industry than even more significant.This paper introduces the company governance theory, management theory and incentive performance evaluation theory about management incentive combination of the analysis. Then it introduces incentive contract management review and research hypotheses, including monetary compensation management, management and choices perks, and this paper puts forward the four research hypothesis. Finally through data analysis, it verifies the proposed four assumptions. Contract cost to the incentive contracts influences the structure. Specifically, along with the change of such factors as economic reform, incentive contract cost may changes, the change of contract cost will bring incentive contracts to adjust and choice. This trade-off is the focus of this study, also is the innovation points in this paper.