Research on Evaluation and Index of Top Management Governance
Management mentioned in this research means the top executives, including general manager, vice-general manager, three chiefs (chief accountant, chief economist, chief engineer) and secretary of the board. The development of the company is directly decided by their work effectiveness. However, whether work effectiveness is good or not is decided by the quality of incentive and restriction mechanisms. Evaluation of top management is aimed at ensuring decision-making is scientific and in the long-term interests of the company, and for making scientific evaluation of managerial incentive and restriction status. It can offer objective information about top management to those inside the company, and to outside institutions and individuals. So the index of top management governance is an important part of the index of corporate governance.
Practices on evaluation of top management governance at home and abroad
The internationally famous evaluation systems of corporate governance have adopted some evaluation indexes about top management governance.
The corporate evaluation index (2001) launched by Standard & Poor's set the evaluation index of disclosure conditions of managerial ownership in information disclosure, and the appointment, compensation structure, and appointment process of top management, replacing process, the relationship between management and directorates, and so on, in the governance structure of ...