Countermeasures For The Incentive Of K-group Executives In Family Enterprises

Family business,as one of the most common forms of business organization,plays an important role in the global economy and is also an important part of China’s economy that cannot be ignored.In order to gradually get rid of the development mode of centralized leadership of big parents,more and more family businesses choose to introduce professional brokers to manage the company.However,in family enterprises,there are differences in the degree of trust of executives inside and outside the family,and their interest pursuit is also different.In general,family members are more responsible,but only if there are constraints and a lack of supervision can lead to free riding,discouraging the motivation of family executives.For non-family executives,the lack of incentives will lead to the difficulty of talent introduction and absorption.And lack of effective governance mechanism,easy to lead to the principal-agent problem.As core talents,senior executives are the endogenous force of enterprise development.Effective executive incentives are crucial for family businesses.This paper adopts the case study method to analyze the executive incentive situation of K Group.When understanding the current situation of executive evaluation,it selects financial indicators and non-financial indicators as the standards.The results show that there are some problems in the indicators such as solvency and profitability of financial indicators.However,the problems in the non-financial indicators show that the satisfaction of compensation and equity incentive is not high,and the satisfaction of the execution of incentive plan is not high.On this basis,the in-depth analysis of the executive incentive situation,the discovery of the executive incentive problems: high executive turnover rate,low matching degree of incentive mode selection,low efficiency of equity incentive execution;The reasons for the existing problems of senior executives’ incentive are analyzed,and it is found that the senior executives’ equity incentive consciousness is backward,the internal governance structure of enterprises has problems,and the equity incentive restraint supervision is insufficient.Based on the above analysis,the author discusses the K group equity incentive and salary incentive practical standard benchmark,targeted executive incentive from innovation consciousness,optimize enterprise internal governance structure,strengthening the equity incentive constraints and supervision and three levels of the concept,system level to ensure the fairness and effectiveness of incentive.