State-owned Enterprise Managers Incentive Pay System Design Discussed

With the deepenning furtherly of SOE reform, the state-owned enterprise has improved a lot in setting up modern enterprise system, especially at the Third Plenary Session of the 16th Party Central Committee, the Central Committee of the Communist Party of China, having passed " decision", puts forward that the shareholding system will become the main form of the state-owned enterprise clearly in " decision", which indicates that principal —agent relationship will appear in a large amount in the state-owned enterprises, in order to make the commission agent relation in the state-owned enterprise in order, we must set up a set of effective encouragement and tied mechanism . Making a general survey of the problem of agency of commission in the state-owned enterprise of our country, it happens, the main reason is omission and distortion of an incentive mechanism, especially compensation is inefficient in encouraging executes. This thesis just bases on this, Author designs a incentive compensation system of managers of state-owned enterprises in order to encourage executive effective, and then the commission agent relation that make in the state-owned enterprise is healthy and orderly goes on.The characteristic of this text and innovation to some extent are:First, this text draws from the content of enterprise's compensation and system changes:: In new period, content of compensation has further meaning , which should reflect one's own value of personnel and not only stay on basic content —Work values respect; Making a general survey of the evolution of the compensation system of state-owned enterprise of our country, the era of encouraging the way trend should be put on the compensation.Second, through analyzing the more popular Yearly Salary System and Incentive Stock Options, the author points out: Though they have many advantages, there are a lot of obstacles in exercising actually; which enlightens authors at the same time : we should overcome their shortcomings and absorb their advantages in the compensation systems designed.