A Study Of The Incentive Mechanism Of China Everbright Bank Changsha Branch

Pay system is an important component of sound corporate governance mechanism in modern commercial bank. The main purpose of the pay system is to form effective incentive mechanisms for bank’s internal staff. How to attract and retain talent has become a standard of highly qualified team of domestic banks. This paper studies the China Everbright Bank, Changsha Branch’s optimal design of incentive compensation mechanism, proposes incentive pay recommendations for improvement.First, the paper studies the current station of China Everbright Bank, Changsha Branch pay syatem. I collect the last five years data from the Changsha branch of China Everbright Bank, the official financial reports and related statements published on the website. The result shows that China Everbright Bank, Changsha Branch’s incentive pay is effective, but relatively weak, indicating that the effects of incentive pay is not very good. The existence of the state of Everbright Bank, Changsha Branch’s incentive mechanism is failure.Secondly, the paper discusses the optimal design of incentive mechanism of the Changsha branch of China Everbright Bank. In order to make clear of the basic ideas for the designing of the banks incentive mechanism, I analyze the job system of Changsha branch of China Everbright Bank, including the job description, job evaluation and external salary survey and fixed salary. According to the job system, a mixed strategy of the salary structure is fit for Changsha branch of China Everbright Bank, i.e. the bank should select different salary structure strategy for different positions, different characteristics of talent. Then the paper designs the overall frameworkof the incentive mechanism, including the annual salary system, post paid system performance system as well as the overall remuneration package of the welfare system, long-term incentive strategies and performance evaluation index system.Finally, this paper studies the implementation of the new incentive mechanism for Changsha branch of China Everbright Bank. Incentive mechanism, once established, should be strictly enforced in order to play its incentive functions. But even the best incentive pay program, if not well implemented, can only be empty talk, or even has a negative effect. So the bank should focus on six aspects of communication and propaganda put forward in Changsha branch of China Everbright Bank to assure the smooth implementation of the new incentive mechanism. The paper design new incentive mechanism for Changsha branch of China Everbright Bank, in order to improve the existingmechnism to optimally motivate staff, promote their potentials to the greatest degree of play, make them work towards the strategic objectives of the direction of banks, realize the banks and employees "win-win" situation, enhance efficiency and competitiveness, finally achieve effective and stable development for Changsha branch of China Everbright Bank.