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Commercial Bank of Chinese Executive Incentive Compensation Mechanism

Author: HuYingXue
Tutor: PeiBoYing
School: Shanxi University of Finance
Course: Accounting
Keywords: Commercial bank Executives Incentive Compensation Incentives
CLC: F272.92
Type: Master's thesis
Year: 2010
Downloads: 321
Quote: 1
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Abstract


In the world financial crisis, a situation of full-blown from the 2007 China Ping An annual salary of 66 million head of Ma Zheming exposure to 2008 Guotai Junan \In recent years, the masses of people's deputies and the focus of discussion. According to statistics, in 2009, China's urban residents per capita disposable income of 17,175 yuan, rural per capita net income of 5,153 yuan. 2009 China's GDP 33.5 trillion yuan, according to 1.3 billion people, the per capita GDP was 25,769 yuan. Executives of state-owned enterprises wage per capita GDP is 15 to 30 times. According to 2008 data, some experts study found that the Norwegian state-owned enterprise executives salary is 1.2 times GDP per capita, Sweden is 1.6 times, 1.9 times France, the United Kingdom is 1.4 times, the United States was 3.4 times that of Japan is relatively high as 4.3 times . From this we can see that the polarization of income distribution system, unfair, unreasonable distribution system so serious a threat of social instability and risks. From Wall Street to China's financial industry executives \Meanwhile, corporate executives pay is an important part of the operating costs of the establishment and management of long-term performance-related incentives and reasonable settlement income distribution, on improving corporate governance and financial management, the company sustained, robust operation is important. China's commercial banks on executive pay incentive mechanism, from the analysis of relative theory of incentive pay, a detailed analysis of the status of banking executives incentive pay and incentive pay through domestic and international banking executives comparative analysis, recognizing China's commercial banks and their excessive executive pay incentive exists unequal responsibilities and rights related to focus only on short-term incentives and the lack of long-term incentives, and the main reason for the formation from various perspectives, and then put forward the corresponding management of commercial bank executives incentive pay suggestions and countermeasures. This article recognizes both domestic and foreign research theories exist incentive problems of the banking sector always blindly emphasized executive incentive is not in place, emphasizing the incentives in place as long as that combination of inputs and performances can be, but does not exist in China's banking industry to dig deep level system defects, and this reciprocal responsibilities and rights abuses caused by excessive excitation is caused by executives, resulting in high executive compensation, incentive mechanism irrational roots. In addition, past research firm argument tends to focus on their own problems, confined to look for the causes from within the enterprise. But the banking sector problems have deep historical roots, with China's unfair income distribution system closely, so Addressing the root causes banks drawbacks, we must stand in the macro social point of view, from the national side, find the reasons why the government level, in order to truly solve the problem. Based on this, we believe that elimination of state monopolies and policy tilt, making the executive compensation and business performance closely linked to the implementation of the interests of the owners and operators of closely-term incentive mechanism, establish a sound bank executive pay incentive system for Modern commercial banks to improve internal corporate governance structure, and actively respond to the challenges of global economic integration and enhance the competitiveness of China's banking industry is of strategic significance.

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CLC: > Economic > Economic planning and management > Enterprise economy > Enterprise planning and management decision - making > Corporate Administration > Personnel Management
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