Effectiveness of Salary Incentives in Our Joint-Stock Commercial Banks

There are some shortcomings in the salary incentive system of our joint stock commercial banks. Two factors are attributable: the salary incentive system and salary environment. The first factor is characterized by neglect of long-term incentive behavior, lack of industrial competition advantage and little attention to the incentives of general staff. The second factor is represented by imperfect banking governance, incomplete marketization and defective legal system. In this paper, the relationship between salary and performance of senior executives and general staff is studied. It is believed that current incentives are basically efficient but not ideally efficient. So a concrete proposal aimed at improving the effectiveness of the salary incentives is provided: from micro-scale, the incentive mechanism should be optimized; from middle-scale, corporate governance should be strengthened and from macro scale, external environment should be improved.