Recently, the quadrennial U.S. election has once again become the focus of media attention. As a candidate for the next U.S. president, Hillary’s “first priority” in the election is to attack the excessive salary of American w88 casino executives. Hillary believes that the income of American w88 casino executives often exceeds the income of working-class people300times, which has exacerbated the problem of income inequality in the United States. In fact, according to the U.S.Federation of Labor-Announced by the Federation of Industry and Commerce2012Year S&P500Index, US S&P500Component stock companyCEOThe average salary is1230Ten thousand dollars, an ordinary worker3.4610,000 USD354times, while1980year, the difference between the two is only40times.
In China, executive compensation, especially the compensation of state-owned enterprise executives, is also an extremely sensitive topic. Back then, "Pre-tax salary of Chairman and CEO of China Ping An Ma Mingzhe is as high as6616.1Ten thousand yuan news" broke out, and public opinion was in an uproar. There has been constant controversy in the industry about how much compensation senior executives of domestic enterprises, especially central enterprises, should receive. Inw88 casinoEMBADr. Chen Shengjun, Director of Education CenterIt seems that instead of focusing on the level of compensation of w88 casino executives, it is better to study the pay gap of senior executives, which has more practical guiding significance for w88 casino performance and development.
The salary gap is not big
2011Year,Dr. Chen Shengjun assumed the responsibilityThe National Social Science Fund project "Research on the Impact of w88 casino Executive Pay Gap on w88 casino Performance and Policy" hopes to explore the executive pay gap and its impact on w88 casino performance through field research on big data of listed companies and a large number of actual companies.
“Our research group has defined three types of pay gaps, the gap between w88 casino executives and ordinary employees, the gap within the w88 casino executive team, and the gap between w88 casino executives and peer executives. ”Chen Shengjun told this reporter.
In fact, the salary investigation of w88 casino executives is extremely difficult and sensitive. The salary issue itself is a relatively hidden topic. Most people are unwilling to talk about their salary issues to the outside world. The salary of w88 casino executives is a more sensitive topic. In small cases, it involves the income gap within the company, and in large cases it rises to the issue of social wealth distribution.
In four years, Chen Shengjun led his research group and team to study the following2001New Year's Eve2012This year12Data on executive compensation of major domestic listed companies in the year; in terms of questionnaire survey, it has been distributed in the company893questionnaires, of which147questionnaires were from w88 casino executives, and other questionnaires were for ordinary w88 casino employees; in terms of w88 casino interviews, the research team interviewed a total of14of companies82People, including senior executives25People have obtained a large amount of down-to-earth first-hand data, opinions and conclusions.
“Through a large amount of data research and actual surveys, we found that the gap between the executive compensation of Chinese companies and the income of ordinary employees is actually not high, at least it is lower than many people imagined. Continuous12Analysis of listed company data shows that, on average, the year when the gap between the monetary compensation of w88 casino executives and employees is the highest6.1times, the year with the highest income gap within the executive team was only2.4times. " Chen Shengjun said.
and US S&P500Component stocksCompanyCEOCompared with the trend of the income gap of ordinary employees widening year after year, the income gap between the monetary compensation of Chinese w88 casino executives and ordinary employees is not large. In fact, they also discovered an interesting phenomenon during the survey. When the income of a company's executives is relatively high, employees within the company generally think it is more reasonable, and even think it can be higher, and are more likely to accept the high salary of the company's executives. However, they are not very accepting of the high salary of executives outside the company, feeling that it is too high and unfair. This shows that the level of w88 casino executive compensation is also a matter of knowledge, communication and understanding. When employees of a company truly understand the capabilities, dedication and w88 casino performance of the company's executives, it will be easier to accept high executive salaries.
Reasonably widen the salary gap
Dr. Chen Shengjun once worked as a consultant for a well-known furniture company in Beijing. In just a few years, the performance of this furniture company has improved significantly, from a small factory with a low ranking to the second place in Beijing's office furniture field. Talking about the rise of this company, Dr. Chen believes that this has a lot to do with the company’s employment philosophy and high salary incentive policy.
Compared with other furniture companies in the industry, the executive salary of this company is very competitive. Even the income of middle-level employees is very competitive. For example, the annual income of the workshop director of this company can reach50Ten thousand yuan, and the income of w88 casino executives can exceed100Ten thousand yuan a year.
This company’sCEOI was hired from Sinian Furniture in Taiwan. Without high salary, I can’t be attracted. Due to the high salary of senior executives, the salary gap within the company has invisibly widened. In fact, this high pay gap shows that the company attaches great importance to human capital and recognizes the capabilities of senior executives. Under the leadership of an outstanding executive team, the company's performance has improved significantly. Correspondingly, the income of ordinary employees has also increased significantly compared with other furniture companies. The company has shown a positive and rapid development trend.
Through case studies of typical companies and analysis of a large number of listed company data, the research team led by Dr. Chen came to the following conclusions: HighSalary disparity within the management team and senior executives-The impact of employee pay gap on w88 casino performance is reversedU"type relationship, that is, there is a double inversion"U" type curve. With the pay gap within the executive team and executives-As the employee pay gap widens, w88 casino performance will first rise, but when the gap widens to a certain extent, w88 casino performance begins to decline. The two inflection points are:The salary gap between executives and employees,45.6times. Pay gaps within executives,10.6times.
This research conclusion shows that if companies want to improve performance, they can widen the gap between executives and ordinary employees in terms of compensation, as well as the gap within the executive team. This can greatly enhance the subjective initiative and work enthusiasm of executives, but its premise The condition is: senior executives must have corresponding abilities and make corresponding contributions; however, when the salary of senior executives is too high or the gap is too large, it will lead to a sense of unfairness and exploitation among employees within the company, and will also cause conflicts within the senior management team, ultimately leading to a decline in w88 casino performance. Therefore, it is very necessary to choose the salary level and gap of w88 casino executives within a reasonable range.
In addition, the establishment of the salary level and gap of executives, especially state-owned enterprise executives, is not only an economic issue, but also considers the social impact.China is a big country with a vast territory and a large population. The economic development of various places is very uneven. Some places have achieved moderate prosperity, while some places are still on the subsistence line. There are even situations where they cannot afford to go to w88 casino or see a doctor. In this national context, if some executives, especially state-owned enterprise executives, are paidIt can easily cost one million or even tens of millions of dollars, which can easily arouse public doubts and dissatisfaction; in addition, data on executives’ benefits and on-the-job consumption are difficult to obtain from public data. This topic is mainly about monetary compensation. Therefore, the monetary compensation of executives cannot be abnormally high.
Interview questions
The compensation of state-owned enterprise executives is a special issue
"China Business News": In the past few years, the sky-high salaries of some state-owned enterprise executives were exposed, causing an uproar in the public opinion. Regarding the high salaries of executives, compared with the salary levels of foreign executives, do you think the salaries of domestic enterprises, especially the executives of central enterprises, are reasonable? What kind of compensation and incentive mechanism can best promote w88 casino performance?
Chen Shengjun:200720783_208106616.1Ten thousand yuan. As soon as it was announced, public opinion boiled. In fact, this is just a special case. Ma Mingzhe was able to cash out his stock options because of the exercise, and the stock price happened to be relatively high, so his income that year was extremely high, and his income in the following two years was much lower. In fact, generally speaking, the actual income received by state-owned enterprise executives is not high. The high income of many state-owned enterprise executives is only nominal income, for example2008The annual income of Fu Chengyu, CEO of CNOOC, reached1204Ten thousand yuan, this is actually just nominal income, the actual annual income is about70-80Between ten thousand yuan. As for the income of senior executives of state-owned enterprises in Beijing, the annual income is generally50About 10,000 yuan. As a w88 casino executive, having the courage to widen the income gap is an affirmation of the executive's human capital. For a company, if there is no sufficiently competitive salary, it will not be able to attract outstanding talents to join.
"China Business News": In reality, why are the salaries of executives of state-owned enterprises and central enterprises more sensitive? People are more likely to express dissatisfaction with the high salaries of state-owned enterprise executives. Do you have any better suggestions for salary management for a special group of state-owned enterprise executives?
Chen Shengjun:and US S&P500Component stock companyCEOWith ordinary employees300Compared with the income gap of multiple times, the income gap of dozens of times of domestic enterprises is actually not high, but for central enterprises, it is a different matter and is quite special. Many senior executives of state-owned enterprises and central enterprises have the status of government officials. They are administrative appointments rather than market selections. Therefore, the salary cannot be determined completely according to the market mechanism. In addition, China has a large territory and a large population, and the economic development gap between regions is huge. The income of executives of central enterprises and state-owned enterprises is determined by the local living standards. Moreover, the State-owned Assets Supervision and Administration Commission also has something to say about the remuneration of state-owned enterprise executives. Generally, the remuneration of state-owned enterprise executives cannot exceed the average income of ordinary employees12times, which is the current salary limit for financial executives60The approximate origin of the ten thousand yuan is based on the public’s psychological endurance. However, salary limits will also have a chain reaction. If the boss’s annual income60million, the income of employees below the boss will also be reduced accordingly. This chain reaction may have a negative impact on employee morale and work enthusiasm.2014At the end of the year, the State-owned Assets Supervision and Administration Commission divided state-owned enterprises into two categories: commercial and public welfare. I think among state-owned enterprises, commercial enterprises can refer to market-oriented standards to formulate executive salary standards, while public welfare state-owned enterprises can refer to the salary standards of civil servants.
"China Business News": Compensation management is also an important part of w88 casino management, especially executive compensation is the top priority. What basic principles do you think should be followed in executive compensation management?
Chen Shengjun:In human resources management, the function of salary is to motivate employees to work hard, while attracting and retaining excellent employees. Regarding the remuneration of w88 casino executives, on the one hand, they must consider their responsibilities, and on the other hand, they must match their abilities, contributions to the company, and performance of the company. We cannot simply look at the multiple of the pay gap, but we must look at whether the high pay gap has brought about high performance and long-term development of the company. This will help mobilize the enthusiasm of senior executives. In terms of the principles for determining the salary of w88 casino executives, three principles of fairness need to be reflected: The first is self-fairness, comparing yourself with your own past and vertically, and feeling that your efforts are proportional to your income; the second is internal fairness, when compared with people of the same level and position, your efforts and income are more reasonable; the third is external fairness, when compared with peers and the same region, your efforts and income are proportional. All in all, try to ensure that compensation is consistent with the efforts and contributions of executives.
（ Text: Reporter Zhao Zheng)
Chen Shengjun’s introduction:
Ph.D. in human resources management from Renmin University of China, postdoctoral fellow in public administration from the Chinese Academy of Personnel Sciences,Associate professor at the w88 casino of International Business, w88 casino,EMBADirector of the Education Center, graduate tutor, researcher at the Human Resources Development and Management Research Center of Peking University, United StatesOSU Fisher CollegeVisiting scholar.
w88 casinoMBALecturer of the human resources management course in the Education Center. giveMBA, master’s students, and undergraduates teach courses such as "Human Resource Management", "Performance and Salary Management", "Personnel Training and Development", "Job Analysis and Design", etc., and have rich teaching experience.
Have worked in the Human Resources Department of Shougang Corporation and the Human Resources Department of Huawei Technologies Co., Ltd. for many years, and have rich experience in human resources management. He serves as a senior management consultant for many companies including Beijing Century Capital, Jinxiu Investment, Xianfeng Rongzhi, and Qingdao Tianze.
Published more than 40 professional papers in core magazines and newspapers such as "Management World", "China Human Resources Development", "China Administration", "Soft Science", "East China Economic Management", "Economic Issues", "Journal of Shanxi University of Finance and Economics", "Peking University Business Review", "China Small and Medium Enterprises", "Economic Daily", "Securities Daily". Published one monograph, edited five textbooks related to human resources management, and participated in the editing of many textbooks.
Presided over or mainly participated in human resources management consulting or training for many companies, including: China Aviation Oil Co., Ltd., China National Chemical Corporation, State Post Bureau, Shengli Oilfield, Xuerun Cashmere Products Co., Ltd., Beiguang Media, Tangshan Zhuheng Steel Company, Chongqing Dongke Group, Jiangsu Huayuan Chemical Co., Ltd., Henan Anyang Steel Company, Fujian Jinxing Group, Inner Mongolia Shengjida Trading Company, etc.
The topics he presided over include: National Social Science Foundation "Research on the Impact of w88 casino Executive Salary Gap on w88 casino Performance and Policy"; China Postdoctoral Science Foundation "Research on the Impact Mechanism of w88 casino Social Responsibility on Employee Peripheral Performance". The main topics he has participated in include: "Research on Strategic Concepts and Countermeasures for Establishing the Service Industry Chain between Hong Kong and the Mainland" by the National Social Science Fund; Beijing Municipal Development and Reform Commission's key research topics on Beijing's national economic and social development during the "11th Five-Year Plan" period; "Research on Civil Service Job Responsibilities Standards", a major project of the Ministry of Human Resources and Social Security; National Civil Service Bureau projects "An Empirical Study on the General Competency Standard Structure and Competency Status of Civil Servants in my country's Administrative Agencies"; a ministerial-level project of the Ministry of Human Resources and Social Security "Research on the Competency Characteristics and Competency Standard Framework of Civil Servant Positions"; a ministerial-level project of the Ministry of Human Resources and Social Security "Research on the Construction of Grassroots Civil Servants", etc.
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