Study On The Salary System Of State-owned Enterprises' Managers Under The Market Economy

Scientific and rational salary system of state-owned enterprises'managers can motivate managers'motivation and innovation, encourage managers to work hard, improve the operational efficiency of state-owned enterprises. For a long time, the level of managers'salary in our state-owned enterprises has been very low, which has frustrated managers'motivation seriously and damped down managers'enthusiasm for work . In order to encourage managers to operate state-owned enterprises, our country has issued a series of managers'salary reform and achieved preliminary results. However, as the"annual salary system" has been introduced in late 90s of last century, many state-owned enterprises'managers has reached a million or more annual salary, the attention of managers'salary by people from the "lack motivation" to the "stimulate excessive." Now the salary of state-owned enterprises'managers in China faces two extremes: some managers'salary is too low and other managers'salary is too high .There are many Principal - Agent relationships, which have many levels and long chains, in our state-owned enterprises. Among them, the most important Principal - Agent relationship is the SASAC as principal and managers as agents. The managers (as agents) may do some things to damage the interests of the SASAC(principal) in order to seek maximum interests by themselves. By granting the managers part of the excess right, the goal of managers and shareholders will be consistent as possible, which let managers to operate enterprises from the view of shareholders, in order to maximize the benefits of enterprises. Therefore, we must design a rational salary system to motivate managers to work hard.This paper from four aspects to study and explore how to design rational salary system of state-owned enterprises. First, we defined the behavioral goals of state-owned enterprises, obtained different short-term and long-term goals in our state-owned enterprises. Second, we reviewed the reform process of salary system in our state-owned enterprises, analyzed their status quo, and proposed the problems of managers'salary system in our state-owned enterprises. Third, we compared managers'salary system of state-owned enterprises between China and foreign country, and referenced the success of managers'salary system of foreign state-owned enterprises. At last, we proposed managers'salary system of state-owned enterprises in view of short-term perspective and long-term perspective.