Reflection On How To Consummate The Salary Incentive Mechanism Of State-owned Commercial Banks

With the situation of China's accession into the WTO and the globalization of the finance, foreign banks and new joint-stock banks, with their effective incentive mechanism, largely snatch financial talents of China's four major state-owned commercial banks. The laggard incentive mechanism of the state-owned commercial banks has become the bottlenecks of restricting its deepening reform and development. With the current grim situation, the construction of a scientific, reasonable and efficient incentive mechanism of state-owned commercial banks will have is very important practical significance.This paper, in allusion to the status quo of the China's commercial banks salary incentive mechanism, discusses construction of the state-owned commercial banks'scientific salary incentive mechanism, and in so doing, to help the state-owned commercial banks to build and implement a scientific and reasonable salary incentive mechanism, to comply with the fierce market competition, and to ensure that our financial professionals strategic success.This paper discusses the status quo of the China's commercial banks salary incentive mechanism, the standard of level of salary and improvement of their salary incentive and restraint mechanisms. This paper considers that the China's commercial banks have initially established a basic salary plus performance salary incentive mechanism, staff salaries and the level of efficiency of banks are low, and have listed, non-listed and state-owned banks decreased series, the differentia of the salary of joint-stock banks'executives is large, which is results of their basic operating, the gap between joint-stock banks'executives and the employees gradually expands, china's commercial banks human capital costs are low but the efficiency of use are lower, economic welfare is still the main economic means for the commercial banks to attract and retain personnel, the forms of salary are single, long-term incentive mechanism lacks. This paper presents recommendations to improve the commercial banks'salary incentive and restraint mechanisms. Firstly, to establish the staff salary incentive and restraint mechanisms which primary on performance salary, and subsidiary on basic salary and welfare security. Secondly, to determine reasonable comprehensive performance assessing goals.Thirdly, salary levels must be considered factors of market competition and performance . Fourthly, to adjust salary structure which focus on long-term incentive mechanism and improving information transparency of the salary of high-ranking managers. Fively, to buildup investors and the general public's supervision.