Income distribution system of the operator

Author: Zhang Yanning
Publisher:
Publish Date: 2000-07-01
Features: To change the current system where the government decides and manages the appointment of business operators, establishing a market for business operators. The main constraint on business operators should come from the market, with government departments mainly formulating macro supervision policies. In developed countries, the rewards and punishments of business operators are directly reflected in the operator market. High-performing business operators are highly recruited with high salaries, while underperforming ones may lose their jobs. The recent intensifying wave of corporate mergers has put even more pressure on all entrepreneurs. If a company's performance is average or even poor, its stock price will be lower than that of high-performing companies because its management has room for improvement, and its stock has the potential to increase in value. Therefore, average-performing companies become the preferred targets for mergers. Once a merger is completed, the operators of the acquired company are highly likely to lose their positions. This strong competitive pressure forces business operators to continuously improve efficiency.