Research on Industry Manufacturing Materials Based on Managers' Compensation and Fair Value Changes

摘要

Managers play a decisive role in the allocation and utilization of industry manufacturing materials in industrial enterprises. Research has demonstrated that the profit and loss from fair value changes has significant impact on managers' compensation. This article studies the profit and loss from fair value changes and sensitivity of Chinese managers' compensation in industrial enterprises and finds out that the current managers' compensation design cannot reflect the revenue information and profit and loss changes in fair value measurement effectively, and there is non-equivalence in impact of profit and loss. Therefore, new compensation stimulation mechanism based on performance contribution and weight ratio should be came up with as early as possible, to guide and maintain the positive relationship between profit and loss from fair value changes and managers' compensation, and adjust the stickiness between them to avoid the negative impact on the utilization of industry manufacturing materials caused by distorted managers' compensation system.