Study On The Establishment Of Chief Executive Officer In China's Enterprises

Since China has entered World Trade Organization (WTO),it is important to perfect the Corporation Governance Structure (CGS) and increase the international competitive abilities of enterprises. At present,there is a kind of misunderstanding on CGS. People always think that CGS adjustment refers to the distinction between owners and managers,making the general manager independent of chairman of the board and perfecting the board of directors and the board of supervisors. This understanding has been out-of-date. Now a popular international concept is how to combine money-capital and human-capital effectively. Attention shall be diverted from the money-capital to the human-capital. As an important component of human-capital,Chief Executive Officer (CEO) results from the continuous improvement of CGS in western countries. In China,the position of CEO appeared a few years ago. But until now,it only remains on the appellative improvement and there is no real CEO in china.Underground this background and based on experience of CEO establishment in western corporations and actually practice of CGS in China's enterprises,the article systematically analyses the establishment of CGS,the engagement system of CEO,the evaluation system and the incentive and restriction system of CEO. The author designs a CEO engaging model and an achievement evaluation model. Through study on corporation governance in foreign countries,the article points out its drawbacks on incentive and restraint systems and puts forward some suggestions according to the CEO phenomenon in China. This research is a reference to the establishment of CEO in China's enterprises.