The Choice Of The Operator Performance Evaluation Index

The operator performance evaluation and the incentive mechanism are two aspects of the same question, backing mutually. On the one hand, the operator performance evaluation system is the foundation of the incentive mechanism, and provides the basis for the incentive mechanism. If there is not the perfect operator performance evaluation system, incentive is unmeaning; On the other hand, incentive mechanism influences contents of the operator performance evaluation, which changes along with the idea and the way of incentive. However, the choice of the operator performance evaluation's index is the connection between the operator performance evaluation and the incentive mechanism. Therefore, the choice of the operator performance evaluation's index based on the incentive reward contracts is advantageous to resolve the agent question, reduce the proxy cost, raise the level of the management and enhance the operator's enthusiasm.The operator performance evaluation is a part of the enterprise achievement evaluation which displays the situation of the whole enterprise. The enterprise achievement evaluation is more comprehensive than the operator performance evaluation. But the enterprise achievement evaluation in China can not display the operator performance and not drive the operator effectively.This paper combines the operator performance evaluation and the incentive contracts based on former achievements of the management, accounting and economics. The reward contract is a part of the operator performance evaluation. The discourse analyzed the traditional net income and the stock price performance evaluation indexes, proposed that the connection between the economic value added (EVA) and the market value added (MVA) supervises the operator performance evaluation, and designed the long-term and the short-term's incentive contracts based on the chosen performance evaluation indexes. We proposed some advices to enterprises in China which execute the operator performance evaluation finally.