The Compensate Inspiration Mechanism Of Managers In Private Enterprises Based On EVA

With more private companies going public, the governance structurenexceed to be criterion, so the professional executive has become important in private listed companies. But under the asymmetric information of modern corporation system, cannot but lead the benefit of the professional executive and shareholder to differ, and then come to agent problem. Thus for private listed companies, it is important to adopt professional executive reward incentive mechanism to reduce agent cost.Considering to the followings:on the one hand, the private enterprise professional managers exist the lack of long-term incentive and stable effect, salary incentive way is too single; On the other hand, practice request, theory development, the enterprise should be the growing awareness to value creation as the first enterprise development goal. Therefore, this dissertation, basing itself upon maximizing the value of a corporation, keeping to the four characteristics of an indicator (i.e., scientificity, effectiveness,comprehensiveness, and practicability), selects EVA which has been popular abroad since1990s, to design an incentive compensation system for professional managers in private enterprise manager salary incentive mechanism research.This dissertation in view of the present existing main problems of professional manager salary incentive in our country private enterprises, designs managers salary incentive mechanism based on EVA. This mechanism statement mainly consists of two parts:the first part for short-term and long-term salary incentive plan design (the introduction of annual salary system, EVA corporation stock option scheme); The second part through an example to interpret how to apply the mechanism as well as to put forward some possible thoughts and management suggestions for private enterprises in the process of carrying out the mechanism. Different company can be based on the specific market environment and oneself are actual, reasonable compensation system in EVA.