Research On Enterprise Performance Evaluation And Incentive Mechanism Of Executive Compensation Based On EVA

With the separation of ownership and management,the evaluation of the company's operating performance has become the focus and difficulty of the company management.The construction and implementation of a reasonable and scientific performance evaluation system can help to guide the company's business activities and improve the competitiveness of the company.The research object of this paper is a local household electrical appliance enterprise,to explore the feasibility and significance of establishing the enterprise performance evaluation system based on EVA.With the globalization of trade,the influences of the foreign advanced technology,and the competition among the home appliance industry,how to use the evaluation system to guide enterprises to achieve sound and rapid development,adapt to the competitive market and the changing policy environment,is a problem placed in front of Y company.Y company has experienced the development of 10 years,has become an integrated enterprise,which can research,develop new technology,fabricate and sell.It has business in more than 30 countries around the world,covering many of the world's top 500 retailers,is gradually becoming the advance of the global competitiveness of home appliance manufacturers.With the increasing competition in the market and increasing demand for scientific management,the existing performance management system of Y company is no longer suitable for Y company's management needs.It urgently needs to update the traditional accounting profit oriented concept,constructing the system of financial strategy in enterprise value management as the core.Through the field research of Y company,the author set up optimization scheme of EVA oriented enterprise performance evaluation system and incentive mechanism,combined with the analysis of the EVA momentum,to provide suggestions for the future development.