The Formation Mechanism Study About Executive Compensation System Of State-owned Monopoly

The executive pay system as the most important incentives of state-owned monopoly, itrunning of good directly related to business development and growth as well as executiveswork effort and enterprise efficiency; Currently, the emphasis of research at home and abroadgenerally falls on the executive compensation of the state-owned monopoly, to explore itfrom the micro level, the relationship between executive pay and corporate performance orcorporate governance; But it is very few to study from the pay system level, This article willstudy from the surface of the executive pay system from a state-owned monopoly, MasahikoAoki of the System Game in the equilibrium theory as the foundation and starting from themodel of the formation mechanism of its source to research and analysis, then I will providean optimization proposal according to this model.I will introduce the system of Masahiko Aoki game equilibrium concept, and explore themechanism of formation of the executive pay system for state-owned monopoly from theperspective of the game, then will propose the mechanism of formation model of theexecutive compensation system of the existing state-owned monopoly: Requirementsaccording to their respective interests and characteristics of information by the government-the SASAC, executive groups and corporate staff, and they will form a collection of eachaction strategy, they as a participant with each other’s collection action strategies as the gameway to beginning the tripartite game under the existing socio-economic environment, andfinally form a relatively stable equilibrium strategy set (these strategies are not necessarily thebest strategy).Due to the presence of two rooms conspiracy to suppress the presence of a third party onbehalf of the investor watch dogs absence, and executives pay system is the basis of theformation of these equilibrium strategies. In order to improve this situation, the author ofseveral developed countries of the West executive compensation system of state-ownedenterprises are briefly discussed, with the inspiration and the specific situation in China, so Iintroduced the fourth party involved in the game, put forward the as the game participantsplay a role from the source, to optimize its generative model. The fourth party participants, Its action strategies: starting from increasing the value of state-owned assets and the long-termdevelopment of the state-owned monopoly enterprises, promote the establishment of theexecutive pay system of high efficiency and high effect.Therefore, the formation mechanism of the executive pay system optimization improved,the game participate in tripartite to quartet. With the participants on behalf of the investorinvolved throughout the process of the formation of the executive pay system, buildinginformation transparent formation mechanism, and only solve the existing executive paysystem formation mechanism, but also conducive to the formation of one of the most stable,optimized set of equilibrium strategies is the Quartet together to build a high-efficiency, highefficiency state-owned monopoly system of executive compensation.