Research On Optimization Of Management Compensation System Of D Motor Company Based On EVA

Pay motivation has been an important part of business management. With the continuous improvement of the enterprise management system, the requirements for the salary system are increasing. Incentives and constraints are both indispensable, especially for the remuneration of the management. As the agents of business management, management have important responsibility to the enterprise, and they have the characteristics of advanced human capital, these have determined the importance of the compensation system of management.D Motor Company was founded in1969, is one of the backbone enterprises of China's auto industry. The company's main business covers the full range of commercial vehicles, passenger vehicles, engines and auto parts. After years of development, the company has established industry-leading product research and development capabilities, manufacturing capabilities and marketing capabilities, the company brands have already been widely known. But as the scale of the enterprise itself continues to grow and development, and industrial environment changes day by day, the original management system of the company also gradually show its insufficient, the attendant problems such as management rigid, incentive insufficiency, the brain drain problem are more and more serious.This thesis first discusses the meaning and purpose of the thesis, and expounded the correlation theory of executive compensation such as motivation theory, human capital theory, and principal-agent theory. These theories have established the theoretical basis for the further study on D Motor Company's executive compensation program; Then thesis undertakes the in-depth study on D Motor Company, especially analyzing the current situation of executive compensation incentive, in the foundation of the original salary system, proposed to EVA index as the core of management personnel salary incentive system, determine to take the basic annual salary+achievement rate of KPI annual salary+EVA annual salary as the salary structure; paper introduces EVA annual salary, designs a unique bonus bank system, which can strengthen the links of benefit between the management and shareholders, so that the enterprise managers can take the long-term interests of the owners for as the core objective of the management, and enable enterprises to long-term stability and rapid development; Finally, we calculate the data for the core part of the new management incentive system, then make out the parameter, point out the problems and risks that may encounter during implementation of the program, and give the appropriate countermeasures, at last conduct an appropriate evaluation to the program.The new executive compensation incentive system is not only fully reflects the value of human capital, and strengthen the link between managers' and shareholders'interests, what's more, it improves the motivation of management, make them initiatively to think about how to create more value for shareholders, which effectively solve the problems in D Motor Company. EVA is a mutual tool with best practices in every country, it has gotten widely and mutually application, but few in China, especially in non-public company. Hope that this study can provide some reference for the application of EVA index in the company's internal management.