The Research For The Optimization Design Of The Executives’ Compensation System In Bank D

In recent years,the competition in domestic banking is getting tougher.especially in the context of the sinking market of state-owned banks,squeezing the living space of local small and medium-sized banks,the development of urban commercial banks has been greatly impacted.Compared with state-owned commercial banks and joint-stock banks,city commercial banks have obvious disadvantages such as small scale and weak core competitiveness.In order to enhance their core competitiveness and promote their steady and sustainable development,city commercial banks must strengthen incentives and constraints for senior executives to make rational decisions and promote the healthy and sustainable development of banks.As an important part of incentive mechanism,compensation greatly affects the behavior of senior executives and is a key factor affecting enterprise performance.Therefore,it is necessary to formulate a scientific and effective executive compensation management system and give full play to the positive role of executives and employees in the bank’s operation and development.However,from the perspective of some Chinese commercial banks,executive compensation incentive system is still insufficient,which plays a negative role in bank management to a certain extent.Bank D is a city commercial bank at municipal level,it’s also the only corporate bank in the city D.This thesis analyzes the executive’s compensation management system,with typical objectives and strong representativeness.In the research process,this thesis sum up the theoy of compensation management at home and abroad,from start with equity theory,principal-agent theory,championship theory.Adopted the method of individual interview to fully analyze the compensation status quo of bank D’s senior executives from the aspects of compensation fairness,rationality and incentive.It is found that the executive compensation system of bank D has problems such as low compensation level,poor internal fairness,unreasonable compensation structure,poor compensation incentive effect and imperfect compensation assessment mechanism.Therefore,This thesis evaluates the position value of bank D’s senior executives by means of the factor point method,The compensation level of bank D’s senior executives is compared with that of the market salary level,and optimizes the salary system by following the steps of salary system design from the aspects of internal fairness,external competition and personnel incentive.The executive compensation system of bank D is systematically constructed,and a comparative analysis is made from the aspects of fairness,competitioness and incentive.Solve the problems existing in bank D’s executive compensation system effectively.Ensure that the solution is reasonable and acceptable to senior management.It aims to improve the working enthusiasm of bank D’s senior executives.Promote the scientific and effective decision-making of bank D’s senior executives.So as to improve the asset quality and profitability of Bank D.In order to ensure the implementation effect of the program,we should establish safeguard measures from the following aspects:perfect organizational guarantee,perfect communication mechanism,establish post rotation system,perfect information disclosure system,and strengthen the informatization construction of salary management.In theory,This study plays a certain reference significance for the theoretical sorting out of the compensation system of commercial banks.In practice,The research results of this thesis can provide useful reference for the compensation management practice of the senior executives of city commercial banks of similar scale.Through optimizing the executive compensation system of Bank D,it can give full play to the positive role of senior executives and employees in the bank’s operation and development.It also has certain positive significance to promote the development of bank D.