Annual Salary System Long-term Incentive Assessment Study

Annual compensation system that aims at long-term incentive is increasingly used in our country as modern corporation system has been set up. But at present a striking problem existing in this system is that it is short of long-term incentive and it results in short-sight phenomena of CEOs of state-run public corporations. After listing the practical problems existing in long-term incentive of annual compensation system of state-run public corporations of our country , this paper analyzes the design and assessment of annual compensation system in combination with relative theory of incentive .Here we put forward some ideas about improving design and assessment of long-term incentive from the point of contingency and point out multistructure and suitable form are necessary for long-term incentive compensation. System of assessment indexes should be established aiming at long-term development. Long-term incentive of annual compensation system should be improved after using these methods and actually lead CEOs into working for long-term development of state-run public corporations.