CEO Salary, Private Benefits of Control and Supervision Ability: Analysis based on Disadvantages of Capped Salary Policy
Some enterprise CEOs(Chief Executive Officer) have to reduce their salaries due to that governments issued capped salary laws and decrees. Academic circles also support the capped salary policy, but they neglect the substitution of the private benefits of control on salaries under different supervision ability of sate-owned enterprise CEOs. Using mathematic models and formulating the CEOs utility function which includes performance and supervision ability, this paper provides a mechanism analysis of the results of capped salary among enterprise CEOs under different supervision ability. The results show that: in the process of the enterprises sustainable management, CEOs capped salary would lead to the substitution of private benefits of control on salary, which would results in negative incentive effect and decreased performance. The supervision ability level is critical to substitution level. Weakened and unchanged supervision ability has significant effect on the substitution level of private benefits of 关键 词 control on salary which would further decrease the performance. It seems that no matter how supervision ability to change pre and pro salary reduction, capped salary policy would be a failure. It is suggested that the supervision ability on CEOs should be strengthened vigorously at the same time of restricting their salaries in the country like China which has issued the capped salary laws and decrees.
control on salary which would further decrease the performance. It seems that no matter how supervision ability to change pre and pro salary reduction, capped salary policy would be a failure. It is suggested that the supervision ability on CEOs s
WU Chunlei MA Linmei
School of Business Administration Management, Liaoning Technical University, P.R.China, 125105 chool Graduate School, China Academy of Social Science, P.R.China, 100102
国际会议
3rd International Forum of Human Resource Strategy and Development(2010年第三届人力资源战略与开发国际论坛 HR 2010)
济南
英文
490-496
2010-10-01（万方平台首次上网日期，不代表论文的发表时间）