Design On Compensation System Of Automobile Enterprises' Performance Evaluation Based On Eva

As the important part of the material economy, the importance of the automobile industry to the national economy can't be ignored:it can provide the development of the industry chain, and technology level can be promoted, and provide more jobs and growth in GDP. In 2009, the State Council also issued the plan to adjust and revitalize the auto industry, clearly affirming its importance to China's economy. However, in the face of the drastic changes in the global auto market, how China's automobile brands learn to seek a reasonable and effective compensation management to compete with multinational brands is the problem that each car manufacturer should solve. Economic Value Added (EVA) is an important evaluation and management tool of modern enterprises, and it has been widely used among large foreign companies, but in China it is still at the initial trial stage. Therefore, how to use EVA to construct a competitive and performance-based remuneration system is a very valuable topic.The article can be divided into four parts. First of all, the first part is theoretical analysis of the performance evaluation and incentive compensation:about the performance evaluation, the paper elaborates the commission-agency theory and the stakeholder theory; and about the incentive compensation, the article separately analyzes it on the basis of economics and management theory, and also gives a brief description of the EVA performance evaluation. The second part is to construct a EVA-based automotive enterprises'performance evaluation index system. Firstly it analyzed the characteristics of the automotive industry, and provided a clear idea of the way of constructing the index system, and then from the EVA-related indicators, traditional financial indicators and non-financial indicators it designed the performance evaluation system of the auto companies. The third part is the design of the EVA-based remuneration system. This part firstly analyzed different compensation strategy according to the business life cycle, and then from the short-term incentive compensation, long-term incentive pay and other incentives to construct automakers'pay system, of which long-term incentive compensation also includes EVA bonus bank, EVA virtual stock options. The fourth part of the article selected C-company to provide a application analysis of the EVA performance pay system. Through measuring the EVA and related business indicators, it designed the appropriate pay system, and evaluated the application effect.The paper used a practical and theoretical research, qualitative and quantitative methods, not only from the EVA financial aspects, but also from non-financial aspects together to build index system. In the pay system design, the article innovatively used enterprise life cycle, combined with different operating characteristics, corporate culture, operating risk, corresponding with different conservative, steady, and radical type of compensation strategies, to formulate compensation system which can be suitable for the future developing direction of enterprise. And from both currency and non-currency forms of incentives it built a diversified pay system, which gave certain significance to the auto companies'performance compensation.