Research On Medium And Long Term Incentive Mechanism Optimization Of H City Investment Company

In recent years,there has been a growing emphasis on medium and long-term incentive policies for state-owned enterprises,driven by the continuous acceleration of state-owned assets and enterprises reform.At the national level,there is strong encouragement for state-owned enterprises to explore and implement multi-dimensional medium and long-term incentives,aiming to enhance their role and effectiveness in these incentive programs.As state-owned enterprises aspire to become world-class entities,their demand for medium and long-term incentives has significantly increased to achieve high-quality development.Consequently,more and more state-owned enterprises,including H City Investment Company,are proactively exploring and implementing medium and long-term incentive mechanisms tailored to their specific circumstances,resulting in notable progress in this area.This thesis focuses on H City Investment Company,a typical local state-owned enterprise in the urban investment sector,and investigates the optimization of its long-term incentive mechanism.Initially,the study provides an overview of current research on medium and long-term incentives in state-owned enterprises,introducing two representative theories:principal-agent theory and human capital theory.Subsequently,employing methods such as literature review,questionnaire survey,and interview survey,the thesis investigates and analyzes the issues related to the medium and long-term incentive mechanisms in H City Investment Company across five dimensions: incentive effectiveness,incentive targets,incentive tools,performance-based compensation,and implementation control.Furthermore,the study delves into the underlying reasons behind these issues and proposes an optimization plan for the medium and long-term incentive mechanism of H City Investment Company.The optimization plan adheres to four key principles: legal compliance,balanced emphasis on incentives and constraints,avoidance of redundant incentives,and prevention of state-owned asset loss.It suggests seven optimization strategies,including strengthening top-level design to enhance incentive effectiveness,prioritizing human capital and refining incentive targets,conducting policy research to enrich incentive tools,adjusting salary structure to promote incentive balance,enhancing the incentive system to ensure objectivity and fairness,establishing an exit mechanism to create an incentive loop,and reinforcing implementation control to continuously improve and refine the mechanism.Additionally,the plan is supported by three major guarantee measures: cultural guarantee,organizational guarantee,and system guarantee,to ensure the smooth implementation of the optimized medium and long-term incentive mechanism in H City Investment Company.This thesis aims to address the practical challenges associated with the medium and long-term incentive mechanism of H City Investment Company.By doing so,it seeks to help the company reduce agency costs,improve human capital efficiency,and facilitate its successful market-oriented transformation and high-quality development.Furthermore,the study offers valuable inspiration and reference for other urban investment state-owned enterprises in effectively implementing and optimizing medium and long-term incentive mechanisms.