Research On Compensation Incentive Mechanism Of Z Energy Executives Based On EVA-BSC

Coal,as one of the most important energy sources in our country,plays an important role in the social and economic development.The coal industry grew during the boom years of 2003 to 2012.However the situation of coal oversupply is becoming more and more serious after 2013.The loss phenomenon of enterprises is also more serious,and many enterprises that originally made good profits also began to lose money.And excessive inventory has led to a further fall in coal price.Faced with these problems of coal industry development,starting in early 2016,China has advanced supply-side structural reform and introduced a series of policies in de production capacity,aiming to help coal enterprises through the cold winter.In the process of supply-side structural reform of coal industry,executives undoubtedly play a very important role.At present,under the condition of the separation of management right and ownership of state-owned enterprises,the phenomenon that operator behavior goal and owner value goal deviates from each other is widespread,and many state-owned enterprises undefined executive compensation is not obviously linked to enterprise performance.It is difficult to realize the responsibility of maintaining and increasing the value of state-owned assets,and the compensation incentive of senior executives of state-owned enterprises is a problem worthy of study.In addition,the State-owned Assets Supervision and Administration Commission of the State Council(SASAC)is constantly improving and optimizing the performance assessment methods of senior executives of central enterprises to ensure scientific nature,and takes into account the traditional accounting profit indicators in the performance assessment.Besides,more emphasis has been placed on the indicators that reflect whether an enterprise can create value.Therefore,in order to realize the strategic goal and improve the management efficiency of state-owned enterprises in China,it is necessary to improve the incentive mechanism of executive compensation on the basis of effective evaluation of enterprise value creation ability.Based on macro-environment analysis,a comprehensive study was carried out for the central enterprise in Chinese coal industry-Z Energy,a representative.The research methods include literature research method,case study method,comparative research method and related financial analysis method.Firstly,from the point of supply-side structural reform,this paper investigated the executive compensation incentive mechanism.According to the collected data,it is found that with the development of society,the management concept of managers is updated.The original executive compensation incentive mechanism has been unable to meet the needs of the development of enterprises.Secondly,on the basis of combing the related theories of salary incentive,EVA and BSC,the industry characteristics of coal enterprises were analyzed.Meanwhile,the necessity and feasibility of introducing EVA-BSC into Z energy were pointed out.Furthermore,through the study of Z Energy salary incentive evaluation system,combined with the characteristics of high-risk industries in the coal industry itself,as well as the supply-side structural reform,the major background of capacity reduction,the executive compensation incentive mechanism based on EVA-BSC was proposed for Z Energy,and the senior executives should be assessed and encouraged in a more comprehensive way.Finally,in order to ensure the improvement of Z-Energy executive compensation incentive mechanism,it has enlightening significance to the future executive compensation incentive,sustainable and healthy development of the central enterprises.