Research On The Compensation Incentive Effect Of Mixed Reform Of State-owned Enterprises’ Executives

Since the Third Plenary Session of the Eleventh Central Committee,the reform of state-owned enterprises has been carried out for forty years.Although it has achieved remarkable results,there are still some drawbacks,such as unclear property rights,no distinction between government and enterprises,oligopoly,inefficient and inadequate innovation.Facing the fierce global market competition,it is urgent to deepen the reform of state-owned enterprises.In the Decision of the Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China on Several Major Issues Concerning the Comprehensive Deepening of Reform,it was mentioned that we should "actively develop the mixed ownership economy".State-owned capital,private capital,foreign capital and other different ownership capital should form mixed ownership enterprises through joint construction,capital increase,employee stock ownership and other forms,so as to further reform the mixed ownership of state-owned enterprises.It points out the direction and the key points.The report of the Nineteenth National Congress also clearly pointed out that "deepening the reform of state-owned enterprises,developing mixed ownership economy,and cultivating world-class enterprises with global competitiveness".By the end of 2017,the proportion of mixed ownership households in property rights and provincial state-owned enterprises reached 69%and 56%respectively in central enterprises and sub-enterprises.Among them,the degree of mixed ownership of state-owned enterprises in the field of full competition is higher.But the reform of mixed ownership is not a simple reform of property right system of state-owned enterprises.With the reform of property right system of state-owned enterprises,the corporate governance structure of state-owned enterprises will inevitably change.Executives are the core talents for the survival and development of enterprises.In order to attract,retain and maximize their work enthusiasm,state-owned enterprises must formulate a scientific and reasonable salary incentive system.In this study,919 state-owned listed enterprises from 2012 to 2017 were selected as research samples.Based on the perspective of equity mixing degree,the incentive effect of executive compensation in China’s state-owned enterprises in the reform of mixed ownership was discussed.The research finds that:(1)the degree of equity mixing is conducive to improving corporate performance;(2)the monetary salary incentive system for executives of mixed state-owned enterprises is conducive to improving corporate performance;(3)the equity incentive system for executives of mixed state-owned enterprises is conducive to improving corporate performance;(4)under other control conditions,when the degree of equity mixing increases,it can effectively enhance the quality of executives of state-owned enterprises.Monetary salary incentive and equity incentive effect.Further research finds that there are differences in executive compensation incentive in different functional types of state-owned enterprises.In commercial state-owned enterprises,executive monetary incentive and equity incentive have significant positive correlation with corporate performance,and under other control conditions,when the degree of equity mixing increases,executive monetary incentive and equity incentive effect can be effectively strengthened;in public-welfare state-owned enterprises,executive monetary incentive and equity incentive effect can be effectively strengthened.There is a significant positive correlation between executive monetary compensation incentive and corporate performance.There is no significant relationship between executive equity incentive and corporate performance.At the same time,when the degree of equity mixing increases,ex tive incentive structure to meet different needs and strengthen the long-term incentive mechanism for executives;(3)establishing incentive mechanism of "pay for performance";(4)because of "Class" measures,classify and optimize the salary incentive structure of state-owned enterprise executives;(5)Strengthen the salary incentive supervision mechanism.