State-owned Commercial Banks' Compensation Incentive Mechanism

At present, in the context of financial globalization, under the premise of gradualliberalization of China’s financial environment, domestic commercial banks facedwith the all-round competition and deep-seated. China’s commercial bankswidespread employee enthusiasm is not high, generally low key personnel greatermobility and core competitiveness phenomenon. The reason is that China’scommercial banks is a general lack of reasonable comprehensive remuneration system,the basic treatment of employees is relatively low, with the staff’s own efforts do notmatch, resulting in ineffective incentive compensation. This affects not only theemployees work enthusiasm, initiative, creativity and the structural stability ofinternal staff, but also seriously affect the bank’s economic benefits and sustainabledevelopment capacityThis article first summarizes the theory of compensation research at home andabroad, especially Chinese scholars on the research status of the state-ownedcommercial banks pay system. By comparison of domestic and foreign commercialbanks pay incentives that state-owned commercial banks should be long-termmechanism to establish incentive pay system. Secondly, the incentive theory as themain theoretical basis, analysis of the status of state-owned commercial banks salaryincentives, and pointed out some problems in the state-owned commercial banksremuneration incentive mechanism: the pay system does not service the bank’s overallstrategy,"to people-oriented" of management concept has not carried out, the designof the pay system is not linked to the performance of individual employees, the paysystem design lack of long-term, and did not make the employees career planning. Onthis basis, the development of the overall development of the bank’s remunerationscheme to encourage employees to participate in the pay system design, theestablishment of diversified, differentiated incentive pay system to ensure the fairnessof the remuneration of the internal, as well as good career planning, improve staffpromotion the system.