State-Owned Company Executives Constraint Mechanism

As the deepening of economic system reform in our country, the economic structure of state-owned enterprises has been Constantly adjust, reviewing the history of the reform and development of state-owned enterprises, it generally can be divided into the plan management, to explore, decentralization and benefits, the contract responsibility system, establishing the modern enterprise system and so on several stages, each stage reflects the inherent characteristics of the enterprise development and the characteristics of the constraint to senior executives.In consideration of the vast majority of state-owned enterprises has been changed to corporations at present stage, therefore, the research object of this article is mainly for the restructuring of state-owned companies.After establishing modern enterprise system, the competitiveness of the state-owned companies has been got promoted, at the same time, the corporate governance problem also appeared increasingly. Building reasonable internal governance structure is the key point to each company for beginning development. Our country state-owned company assets belongs to the whole people, by the state-owned assets supervision and administration to perform the duty of investor on behalf of the company top management is responsible for the exercise of management control, incentive problems about state-owned company executives have been brought to the attention of the legal profession and the economics profession, aims to strengthen the incentives of executives to make them more loyal, diligent to exercise the management control, in the final analysis is to ensure the maintenance and appreciation of state-owned assets.On the surface, the state-owned company internal various functional organization is very perfect, but in the practice, the serious insider control problem in the state-owned companies, and the management behavior problem is out of control. Also the corruption phenomenon can’t be got effective control. Investigate its reason, there is no Supervision and restraint mechanism when its attention got to construct the executive incentive mechanism at the same time. The lacking of supervision and constraint, result to lost security obligation of performance. Through to the state-owned company executives constraints in each development stage characteristics and existing problems, this article discussed and put forward suggestions to perfect the state-owned company executives, to strengthen the supervision of senior executives, to implement the incentive mechanism and constraint mechanism of checks and balances, urged the industry cautious job duties.