Study On The Executive Compensation Encouragement Mechanism Of State-Owned Listed Company

In the knowledge economy, competition from companies based in the traditional material resources has transfer to compete for the human resource. As an intellectual-intensive groups, senior management persons (the executives) are the core of enterprise development and the scarce factors of production. In the process of rapid economic development, listed companies are mostly state-owned large enterprises, their impact on the industry is very large as well as on the economic. It makes the Role which executives who are always standing in the face of the storm as a daring pioneer Impact on the state-owned listed companies meaningful. However, defects of state-owned enterprises executive compensation incentives not only affect the development of enterprises but also arouse great controversy. So how to improve executive compensation incentives in a market economy it is important to deepen the process.This paper based on the agent theory, human capital theory and incentive theory. It sorted out the change of state-owned enterprises and summarized many research for domestic and foreign executive compensation. By analysis of the current executive compensation system, it found the typical problems in the existing senior executive compensation system, particularly the problem of salary structure. On the basis of summing up the advanced experience of executive compensation encouragement mechanism in Western developed countries, this paper combined with the existing management system according to the actual situation of the state-owned listed companies, and proposed a set of suggestion for the executive compensation incentive system of state-owned listed companies. That is, execute the pay system with Chinese characteristics, combine the annual salary system to the equity incentive. It wants to achieve the purpose of avoiding short-sighted behavior of executives and motivate them well.