Research On Senior Executive's Salary Incentive Of State-owned Listed Company

Business ownership and management rights are separated from company in modern enterprise system. It inevitably brings the conflict between the owners and operators. The pursuit of business owners is the residual claim, and the pursuit of managers is the utility maximization. How to make the goal of enterprise managers equals to the goal of owners in order to performing a reasonable power and actively seeking development. The key point is to establish a perfect incentive operator - binding mechanism. Incentives - restraint mechanism includes incentive mechanism and restraint mechanism; incentive mechanism includes the spirit incentives mechanism and material. Material incentive mechanism is the core in incentive mechanisms, and executive remuneration model is the core of material incentives mechanism.The state-owned enterprises hold a considerable Proportion in the listed companies in china. Pushing and developing the socialist market economy must be based on the state-owned enterprises, and these companies play an important role in the construction of the market economy. The reform of state-owned enterprises has been promoted persistently, as a great part of the corporate governance, the salary incentive mechanism, has become an important component of the listed enterprises especially the state-owned listed enterprises. However,for a long time, in the reform of the Property rights of state-owned enterprises, the salary incentive system did not receive much attention, the lack of high-rank staff salary system is the main reason of insufficient, inefficiency of the state-owned enterprises, The disadvantages of salary incentive mechanism have become the stumbling block in China's state-owned enterprises reform, how to establish a effective incentive pay system has been a hot issue in management studies.The paper select State-owned listed companies as the object. And it analyzes the history of pay system for State-owned enterprises state-owned listed by using principal-agent theory, human capital theory and corporate governance theory. The paper also analyzes the salary– performance of sensitivity from the aspect of salary system and stock options system by using empirical analysis. Then, the paper designs the incentive pay model for executives.