The Study On The Law Of The Reform For Double--track Senior Executives Compensation In State-owned Enterprises

State-owned enterprises are the mainstay of the national economy. So they play a pivotal role in economic development as well as in social stability. They are provided a lot of resources, capital, and even operating power by the government. And to some extent, the state-owned enterprises have the dual characteristics of being businesses and public organizations. Therefore, the executives of state-owned enterprises, as the direct leaders, have the double identities of entrepreneurs and administrative officials. In order to fully mobilize their enthusiasm, a set of effective incentive system must be introduced. However,the rising pay of the executives has caused a public outcry. The current incentive mechanism is too simple and crude, causing many social problems.The fairness, rationality, scientificalness and transparency of it has also been questioned. The reasons are as the following four aspects. First, it is over administrative to appoint or dismiss an executive, which makes it difficult for the state-owned enterprises to adapt to participate in market competition. Second, the executives possess both riches and honors. So it’s difficult to reflect social justice. Third, there is not a scientific and reasonable salary management system because it is difficult to effectively link between business performance and the leaders’ pay. Fourth, the executive compensation disclosure system is not perfect. Also, it can not be effectively supervised by the national institutions and the public. So, how should these problems be solved? This author gives us his opinions and suggestions. On the basis of fully combining with China’s basic national conditions,the government should positively draw lessons from foreign advanced experience. Through setting up specific laws and regulations and perfecting related management system, the government can establish modern enterprise system and realize the institutionalization of management for executives as well as the scientificalness of enterprise running, which will improve the market competitiveness of state-owned enterprises.Therefore, the social value of the state-owned enterprises can be reflected. This article is divided into four chapters.The first chapter, it states the process of the state executive compensation system in China since the 1949. The process is divided into three stages:completely dominated phase; gradual marketization stage; as well as the security administration of double-track exploration stage.There is summation, analysis and comparison of the three. It aims to lay the foundation for the following reform and provides direction through the statement.The second chapter is about the reading and investigation of the state-owned enterprise salary systems in five countries--the United States, Britain, France, Germany,and Singapore, which brings some enlightenment to Chinese state-owned enterprise executive pay reform.The third chapter gives the summary to the current situation, pointing the five following flaws:the classification system of state-owned enterprises, corporate governance structure, incentives, a lack of professional manager system and information disclosure. In this way, it can help to find out the root cause of the problem, in order to suit the remedy to the case.The fourth chapter, based on the above research, gives suggestions. It suggests that through the establishment of modern enterprise system, perfecting the corporate governance structure, setting up effective ways of compensation incentive, improving the system of professional managers and information disclosure system an so on. It aims to establish a complete and orderly legal system to be suitable for the situation of our country state-owned enterprise executive compensation system.