Study On The Optimization Of Executive Remuneration System Of Corporation A In Shenzhen

Previously, as market circumstances degraded, the consumption concept of urbanand rural residents updated, consumer demand complicated, domestic and overseasrivals increased, household appliance industry in our country was confronted withunprecedented market competition and brain competition. In order to win thefront-runner position in the market economy system in which develops constantly andimproved gradually, and improve business performance, enterprises were forced toattract and keep excellent enterprise management personnel. The executiveremuneration system, as the focus of human resource development and management,is becoming a critical means of seizing senior managers. Therefore, basing on thestructure of executive remuneration, its influencing factors and its general theory, thispaper studies the optimization of executive remuneration system and its supportingmeasures in household appliance industry, casting theoretical significance andpractical significance on the improvement of enterprises’ market competitiveness.Grounding on an elaborative comprehension of the existing executiveremuneration system of Corporation A in Shenzhen, this text analyzes in depth theexisting problems of this firm’s executive remuneration system, and schemes outspecific contents and respective supporting measures of the optimization of executiveremuneration system. Firstly, this paper introduces theories on the executiveremuneration system; secondly, it summarizes the fundamental state, cultural ideasand institutional structure of Corporation A in Shenzhen, looks into Corporation A’scurrent situation of the executive remuneration system, and stretches out the mainproblems existed in the executive remuneration system; thirdly, basing on theprinciple and overall thought of executive remuneration system, it formulates specificcontents of the optimization of executive remuneration system, which consists ofoptimization of the basic salary for executive pay, optimization of performance salary,optimization of stock option, and optimization of benefits salary; finally, to ensure theplanning and systematical implement of the optimization of executive remunerationsystem, this paper stresses on the implementation steps and supporting measures inthe company’s optimization of executive remuneration system--consisting ofconsummating the company’s internal governance structure, strengthening theindependence of remuneration committee, improving the transparency of executive remuneration, and building communication platforms of executive remuneration. Thestudy found that corporate executives pay system is acceptable, but there is a largeoptimization space.Based on the theory of executive compensation system, this article uses themethod of case study and survey analysis, to study the current situation and theoptimal design of the Shenzhen A company executive compensation system. Aimingfindings of executive remuneration system of Corporation A in Shenzhen, the morescientific optimization program that this article mades helps executives to improve theperformance of Corporation A in Shenzhen, and provides a referencerecommendations for its operations. In addition, optimization program of executiveremuneration system of Corporation A in Shenzhen that the paper constructs also hasa important reference value for other companies.