4 Common Disputes About Executive Compensation And Benefits

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We must know that the executive compensation structure is more complicated.

According to Xu Mengyun, different companies have different pay structure, but they are mainly concentrated on the following aspects: wages and benefits.

According to the company law of China, the company executives refer to the manager, deputy manager, financial director, the Secretary of the board of directors of the listed company and other personnel stipulated in the articles of association.

According to their duties, the board of directors,

In recent years, labor disputes between employers and senior management personnel have increased significantly due to their

Controversy focuses on 1 fixed benefits must be qualitative

Due to the relatively high salary and welfare of senior executives, the resulting tax and other cost problems emerge immediately, at the same time, based on the calculation of the economic compensation payment after the senior executives, the overtime base, the calculation of the base number of sick pay.

Enterprises often use fictitious expenditure to avoid tax and reduce monetary income, and bring some of their employees' income into the "fixed treatment" benefits, and use the reimbursement quota to "irate" the accounts. In practice, enterprises take evasive measures to strike the "policy edge ball", and turn the salaries of employees into various kinds of subsidies, so as to avoid paying taxes.

The usual practice is to deduct from the wages, such as stickers, pasta and so on. After the executives provide the bills, they will be deducted from the company's administrative expenses, and the tax will be returned to the executives in cash.

Since such wage composition is unknown, there will be divergence of wage standards once labour disputes arise.

For example, the staff claim that the housing allowance, food allowance and laundry fee are part of the personal wage, while the unit considers this part to be an additional welfare, which is actually reimbursed by effective bills, and the employees' real consumption behavior is very unfavorable for the employees.

Therefore, it is suggested that all kinds of executives should pay attention to all kinds of nature and clarify their specific nature in order to avoid their disadvantages.

Controversy focuses on 2. Executives involved in year-end dividends can not blindly sign.

Meng Yun said that year-end bonus, also known as post bonus system, is a mode of solving the enterprise distribution mechanism with the help of the idea of joint stock system. It often acts as a short-term incentive for employees and is generally applicable to all kinds of enterprises.

That is to say, a certain proportion of dividends should be given to some special jobs of the enterprise. The employees who apply for the position enjoy the dividends of the shares of the company, and the dividend power they enjoy will disappear at the same time.

The specific proportion and form of dividends are usually regulated according to the internal regulations of enterprises.

The year-end bonus is an incentive reward scheme for the enterprise to encourage employees and improve their performance by giving dividends at the end of the year (before the Spring Festival).

The purpose is to improve the short-term performance of employees, which is a temporary wage payment behavior.

Unlike fixed wages, year-end dividends are linked to personal performance and fluctuate in volume.

The qualification, the size of the year-end bonus and the amount of personal reward are three basic elements to be considered when the year-end bonus is issued.

Based on the importance of top management positions, enterprises usually agree on the Constitution and establish labor relations with senior managers.

Based on stability considerations, executive pay is usually in the form of annual salary system, that is, annual unit, and the distribution mode of annual salary of operators is determined and paid according to the scale of production and operation and business performance of enterprises.

Since our law requires wages to be paid monthly, even for executives who take annual salary, their wages need to be split for months.

However, in such a form of payment, if employees leave without a full year's work, there is no definite provision for the remaining wages.

In practice, it is usually measured according to the articles of association, the relevant rules and regulations and the agreement between the two parties. If the agreement is not clear, the worker may advocate that the wage should be complemented according to the proportion of the annual salary according to the proportion of the service month, but because the form of executive pay is more complicated, the handling methods of different cases are different, and whether the final support can not be generalized.

Therefore, it is suggested that workers should know clearly about remuneration and other related matters when signing labor contracts, and do not blindly sign or promise to avoid adverse consequences in future.

Controversy focuses on 3 overtime pay for executives who do not work regularly.

Xu Mengyun said that in the labor dispute cases involving senior managers, disputes about whether the employer paid "overtime pay" and the proportion of executives who were drawn from the profits of enterprises accounted for the majority.

But before settling the "overtime pay" dispute, the first thing to solve is the problem of the senior man hour system.

Executive hour system

Because of the particularity of the nature of executive work, most enterprises will implement timed system for executives.

However, whether executives need to pay overtime pay to executives who are not suitable for working hours, there are different operations.

For example, Shanghai stipulates that only the employees who work on irregular working hours are scheduled to be paid on statutory holidays, they need to pay no less than 300% of their daily wages or disappearance of wage standards. They are not required to pay in the other two situations. However, according to the relevant regulations of Beijing and Jiangsu, even those who have worked on irregular working hours can not be required to pay corresponding overtime wages even if they are assigned to work on statutory holidays.

Under normal circumstances, the implementation of an irregular working hour system in a post requires not only the approval of the administrative department, but also with the parties concerned.

Disputes arising from overtime pay

Overtime pay includes two kinds of overtime cost and additional cost.

Among them, "overtime cost" refers to the cost of extra work on weekends or statutory holidays. "Additional cost" refers to the cost of arranging work hours for workers in normal working days.

Under the general working hour system, the employer should pay 150% of the wages of the workers for the extension of the working hours. The workers who work on the break day can not arrange the rest, and should pay 200% of the wages. The workers who work on the statutory holidays should pay 300% of the wages.

Because executives are highly paid people, in case of disputes arising from overtime pay, enterprises often defer defense on the basis of the corresponding overtime pay of senior executives' salaries, and some even make clear that wages include overtime pay in the salary and welfare payments of labor contracts.

This problem must be combined with the system of examining and approving the time limit system mentioned above.

For enterprises in other regions except Beijing, if there is no approval from employees or without approval from the labor administration department, there is no legal basis for the defense against overtime pay.

The corresponding overtime pay should be paid according to the actual working hours of the employee.

Even if the amount of overtime pay is clearly stipulated in the labor contract, if the actual overtime cost is higher than the agreed cost, the enterprise needs to make up the difference to the employee; on the contrary, if the actual overtime pay is lower than the agreed cost, the worker does not have to return it.

Controversy focuses on 4 equity executives generally limit service period.

In many enterprises, executives are given corresponding shares to prove their importance in the enterprise.

There are two reasons for employees to hold shares: one is based on the equity incentive plan, the plan is for employees, that is, the executives are only employees of the company, and the other is based on the fact that the executives belong to the shareholders of the company at the same time, thus holding shares. The legal relationship between the executive and the company is not only labor relations.

Equity incentive is the main way of long-term incentive for employees. In the United States, many long-term incentives such as restricted stock ownership plan, stock option system or stock option plan, virtual stock form or stock appreciation pole, delay payment plan, specific target incentive plan and management buyout have been successfully used, and have fundamentally changed the salary structure of employees.

Especially in hi-tech enterprises, it is more widely used.

The stock option system is the most widely used and the most effective incentive mechanism.

However, in practice, enterprises often take the conditions that the grant of shares should satisfy the service period of a certain period of time or not to leave the enterprise within a certain period of time, that is, the incentive is a conditional grant.

Under such circumstances, once the laborers can not meet the corresponding conditions, the donation behavior also vanishes. The enterprise has the right to ask the employee to return the corresponding stock and return the proceeds based on the equity interest.