The Research On State Executive Pay System Reengineering Based On The Theory Of Equity Theory

Recently, building a socialist harmonious society is the goal of ChineseCommunist Party’s social development, which should safeguard social fairness into aprominent position. There is an unprecedented change in distribution the benefits ofmembers of in community. Recently, with the further development of market economy,China’s state-owned enterprises showed a trend of high levels of executive pay. Thereform of state-owned enterprise’s executive pay system has not met the requirementsof standardization in a long time. Therefore, under the background of constantlyadvancing in state-owned enterprise reform, it is urgent to find a suitable way inreforming of Chinese state-owned executive compensation path, and to choose a waywith a high motivation and strong binding effect of executive compensation system.The paper conducts a research of re-pay Chinese state-owned enterpriseexecutives system in the following areas: Firstly，Make a definition of fair theory,state-owned enterprises, executives, the concept of pay. Using literature review,theoretical introduction to understand the connotation and extension of the theory offair, SOE pay system，and the current development of executive pay system. Secondly，The paper utilizes Fair theory to resolve Chinese state executive pay system. Firstly，elaborate the status quo of Chinese state-owned executive compensation system；secondly，from the four dimensions of Fair theory：Procedural fairness，result fairness，internal equity and external equity，researches the resolution of current executivecompensation system respectively.；finally, summarize the problems of unfair situation.Thirdly，As the typical case of State-owned listed companies of CIMC，the paperintroduces the development status of CIMC and corporate structure model, and thendescribes the current situation and problems of the remuneration system, summariesthe status quo of CIMC， and explores the reengineering of CIMC executivecompensation system. Lastly，summary a general way of executive compensationsystem and recycling program of Chinese state-owned enterprises. Solving thisproblem，not only can be advantage for the reform and development of China’sstate-owned enterprises，but also can reflect the superiority of the socialist justice. It is a practical guidance in narrowing the income gap between China and improving therelationship between income and allocation. It is the key to achieve the development ofour economy sustainably，and is the foundation in building a harmonious society.