Study Of Salary Incentive Mechanism Of SOE Executives

Under the effect of China’s macroeconomic regulation and market economy system,China’s economic aggregate has now emerged as the third of the world. However, China isstill a third world country. China’s economic structure is relatively simple.Although themodern enterprise system has established,there are still many aspects of businessadministration need to constantly upgrade and perfect.Since the separation of managementand ownership, remuneration of senior management of state-owned enterprises has beenwidespread concern.Based on the current status of the management of state-ownedenterprises,this thesis studies the pay incentives of executives of state-ownedenterprises.This thesis based on the theoretical basis of salary incentive theory like thetheory of Maslow’s needs hierarchy, two-factor theory of motivation and expectationstheory.Study and analyze salary incentives at home and abroad and summary lessons fromthe successes of management experience abroad.Collect the domestic state-owned datapublished in recent years, give deep analysis of executive pay in domestic.This thesis isintend to reveal the existing problems in incentive remuneration of SOE executives andanalyze the causes of the problems to provide ideas to solve the problems.On this basis, givea comprehensive elaboration of the design of incentive model of the Chinese state-ownedenterprise combined with the enterprise management conformation and performanceappraisal system.This thesis elaborated design principles of incentive compensation modeand various design factors to be considered, build a comprehensive incentive compensationmode of SOE executives including annual salary system and long-term equity incentivesand welfare.Also, the paper presents that a dynamic mechanism need to be established to maintain state executive incentive compensation models during the implementationprocess.In the last part, on the basis of the study and grasping of the situation of thecompany N, build a comprehensive incentive compensation mode of executives forcompany N based on performance appraisal.At last this thesis provides some ideas andsuggestions to improve the current executive compensation management of state-ownedenterprises.