Research On The Incentive Mechanism Of Executive Compensation Of Industrial And Commercial Bank Of China

As the actual operator,the executive of state-owned enterprises directly affects the development of national economy.Compensation system is an important measure to encourage executives to work hard.The working status and work efficiency of senior managers of ICBC are directly related to their compensation.Reasonable compensation incentive mechanism can effectively enhance the enthusiasm of senior managers,mobilize their intelligence,and better realize the management of banks.However,from the current state-owned enterprises in China,especially the banking organizations,there are still some problems in the executive compensation incentive mechanism,which has a certain negative effect on the normal bank management.This paper takes the Jiujiang Branch of ICBC Jiangxi Province as an example to study the effect of its executive compensation incentive mechanism.After analyzing the present situation of executive compensation,this paper analyzes the role of executive compensation incentive mechanism from three dimensions: profit level,company value and wind control level,respectively.At the same time,it expounds the relationship between bank management index and executive compensation.At the same time,it is concluded that there are four problems in compensation incentive of Industrial and Commercial Bank of Jiujiang Branch,one is the low correlation between executive compensation and enterprise performance,the other is the lack of reasonable and perfect performance evaluation system,the third is the lack of long-term incentive means,and the fourth is that the executive compensation disclosure system is not thorough Ming.In order to further optimize the executive compensation incentive mechanism of ICBC,this paper gives a combination of short-term incentive,long-term incentive and supplementary incentive to the executive compensation incentive scheme of ICBC Branch.At the same time,in order to guarantee the implementation of the program,six safeguard measures are given.One is to establish an internal restraint mechanism;the other is to perfect the information disclosure system;the third is to perfect the talent employment mechanism;the fourth is to promote and perfect the capital market;the fifth is to perfect the system of laws and regulations;and the sixth is to strengthen the supervision of public opinion.