| Executives' sky-high salary has been criticized for a long time,and has also become the focus of attention of society and the media.Therefore,in order to strictly eliminate such incidents and further encourage executives,the government has issued various policies to limit executive compensation,while at the same time,making the best efforts to carry out executive compensation incentives in order to create the greatest value for enterprises.In 2014,China promulgated and implemented the Compensation Reform Plan for Managers of State-owned Enterprises,which clearly shows that the salary of executives of state-owned enterprises is related to the average salary of their enterprises,while the performance salary is not more than twice the basic salary.In this context,as a state-owned enterprise in China,how to design and formulate a set of salary management system that can effectively motivate the executives of state-owned enterprises,and at the same time meet the current policy requirements,is a realistic problem facing the current state-owned enterprises in China.In view of this,according to the latest direction of salary reform of state-owned enterprises since the 18 th National Congress of the Communist Party of China,Huarun Sanjiu,a listed enterprise in the pharmaceutical industry of state-owned enterprises,is taken as the research object.There are three reasons for choosing: first,as a subsidiary company of China Resources Group,China Resources 39 Pharmaceutical Co.,Ltd.is also a listed company of the central enterprise,so the influence of the restriction pay order as the leader of the central enterprise is more obvious;second,the executive pay of China Resources 39 has been ranked in the top 100 of the listed enterprises,and the background of the restriction pay order issued in 2014.The salary of the lower executives has declined significantly,about 31% compared with the same period in 2013.Thirdly,the operating performance and net profit of China Resources 39 have been among the best.However,under the promulgation of the salary limit order in 2014,the operating income has declined by 6.7% compared with the same period in 2013,and the net profit has also declined by 11.7%.Therefore,this paper first elaborates the research background,significance,methods,content,innovations and literature review of the executive compensation system at home and abroad;secondly,it collates the theory of executive compensation management and forms the theoretical basis of this paper;thirdly,it briefly introduces the case of Huarun Sanjiu enterprise,mainly from the basic situation and organizational structure of the enterprise,compensation system,structure and so on.The basic background of the case is formed by introducing the evaluation and evaluation as well as the comparison before and after the salary limitation.Fourthly,based on this background,the paper studies the salary management system of the top executives in Huarun Sanjiu enterprises.The results show that the salary structure of the top executives in Huarun Sanjiu is single,the long-term incentive is not perfect,the performance salary evaluation system is imperfect,and the salary payment is not public.Open transparency and other issues,followed by a thorough investigation to find out the crux of the defects,that is,the lack of awareness of enterprise pay management,management system defects,pay and performance management compatibility is not enough,executive information disclosure is not perfect,and lack of pay supervision;then based on previous empirical analysis,it is concluded that executive pay has a positive correlation with business performance,through the Sanjiu,short-term performance evaluation and long-term financial analysis draw lessons from the enlightenment,emphasizing the importance and necessity of executive compensation management system.Fifth,on the basis of the above analysis,combined with the theoretical basis,the relevant conclusions and research recommendations are drawn,that is,the central enterprise salary limit has a negative incentive to the operating performance of Huarun enterprises,so it is necessary to develop a correct and reasonable salary management mechanism.To improve the current dilemma and put forward suggestions to improve the internal governance structure of enterprises,enhance the transparency of executive compensation and establish modern compensation management concepts.The above exploration provides a good benchmarking sample for enterprises with the same situation under the current salary limitation of state-owned enterprises,and also provides a useful practical test for the further reform of salary of state-owned enterprises. |
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