Exploration and Application of Director Salary Incentive Compensation System in Enterprise Management Development
These authors contributed equally.
- DOI
- 10.2991/aebmr.k.220405.031How to use a DOI?
- Keywords
- Salary incentive; Incentive system; corporate governance; Case study
- Abstract
A reasonable director compensation system in large enterprises is indispensable to the successful development of enterprises. Effective director compensation is directly related to the success or failure of corporate governance. Based on data sampling analysis, this paper constructs the relationship between the salary structure of directors and the development of enterprises under the influence of COVID-19 in the past three years in the three companies of the Alphabet, Amazon and Intel. Using principal-agent theory, human capital theory, Maslow’s hierarchy of needs theory and equity theory, this paper demonstrates the impact of a reasonable and efficient salary incentive system on the enthusiasm of Enterprise Directors and the development of enterprises. The results show that on the basis of the division of directors’ remuneration into fixed remuneration and variable remuneration, if diversified wage composition methods such as stock award, option award, welfare subsidy and additional allowance are set in variable remuneration, the enthusiasm and efficiency of directors’ work will be improved, and the profitability and positive development of enterprises will be promoted while they realize their self-worth. This study not only enriches the research literature on the relationship between directors’ compensation contract and enterprise development, but also expands the variable scope of the compensation system, which has certain practical significance for enterprises to formulate a scientific, reasonable and efficient directors’ compensation system in the future.
- Copyright
- © 2022 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article distributed under the CC BY-NC 4.0 license.
Cite this article
TY - CONF AU - Xueying Deng AU - Zhengxiong Lin AU - Chenhao Zhan PY - 2022 DA - 2022/04/29 TI - Exploration and Application of Director Salary Incentive Compensation System in Enterprise Management Development BT - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022) PB - Atlantis Press SP - 179 EP - 188 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220405.031 DO - 10.2991/aebmr.k.220405.031 ID - Deng2022 ER -