The Incentive Mechanism Research Of Senior Management Based On Corporate Life Cycle Theory

With the deepening of reform and opening-up, the enterprises are facing increasingly fierce competition,so that the senior management are becoming more and more importament to the corporate.It is prevailing for modern enterprises to perform principal agent system. But there exists devoice between ownership and control. The subject status of departure leads to a series of principal agent problems.And the incentive is an important means to resolve them. Since early 1900's , many theorists and scholars have studied the issue, and got plenty of remarkable achievements. But there are obvious defects, such as paying more attention to pure incentive theory, but barely involving the application of the incentive mechanism. This thesis endeavors to apply the internationally prevailing theory of enterprise life cycle to the research on incentive mechanism.The full text is divided into four chapters. The first chapter of this article introduced background and significance of the research, the present situation of the research at home and abroad, the definition of the related concept, the thinking and content of the research. The second chapter is the base of the research.including three areas: corporate life cycle theory , principal-agent theory and the theory of incentives. The third chapter introduces the definition of corporate life cycle stages , as well as the characteristics of each stage of the corporate and risk: The author selected the six indicators which is closely related to enterprise development, by the way of derivative analysis, the author selects 6 indexes to define the life period of an enterprise, and divides it into four stages: introduction,growth, maturity and decline.Chapter IV is the core of the full text. The author analyze the several major incentive approachs of the enterprise senior management, and in the foundation of third chapter designed the incentive mechanism of senior management.