A Study in the Incentive Model of China's Private College President

摘要

The rapid development of private higher education institutions has made private colleges enter an intensive development stage, and the incentive to the private college president has become an important subject. However, the Ex ante incentive is superior to the Ex post incentive, and how to provide the effective incentive to the president after their appointment has become an urgent problem. Based on years of experience, I propose that the private college is complex entity with multiple governance mechanisms, or in other words, the private college is the same as other enterprises which all face the dual constraints of profit and development. Essentially, the first aim for the private college is how to get profit, and the second is how to grow. I will argue that in order to achieve the goals above, 'stock-based incentive' is the proper incentive for the private college president.