AbstractAbstractAnnualsalarysystemhasattractedabroadattentionagaininrecenttwoyearsasourstate-ownedenterprisereformdeepenscontinuously.Asatypeofencouragingmechanismandsalarydistributionsystem,itsymbolizestherecognitionofhumancapitalvaluesoftopmanagementoftheenterpriseandbenefitstheenterprisefromachievingmaximumprofitandimprovingitspowerofcompetition.XiamenWaterGroupCo.,Ltd.isoneofthemajorstate-ownedenterprisesofpublicutilityindustryinXiamen.Inthemacroenvironmentofstate-ownedenterprisereform,XiamenWaterGrouphaspreliminarilyestablishedmodernenterprisesystemsthroughoptimizationandintegrationofwaterresourcesandintroductionofstrategicpartnerofinvestment.In2005,XiamenWaterGroupisimplementingannualsalarysystemonitsprincipalsubsidiary-XiamenWaterSupplyCompany.ThethesisanalyzestheproposaloftheannualsalarysystemdesignbyXiamenWaterSupplyCompany,discussespossibleproblemsthroughthecasestudy.Theproblemsoftheannualsalarysystemincludeinsufficientlongtermencouragingmechanism,lackingrestrainingmechanism,andproblematicperformanceevaluationsystem,etc.Implementationofannualsalarysystemalsorevealstheproblemsofselectionandappointmentmechanismofexecutives,stimulationofemployeeinitiative,andinternalfairness,etc.Thisthesisproposesfollowingadvicestoresolvetheaboveproblems:modifyingannualsalarystructures,increaserestrainingregulations,improvingtheperformanceevaluationsystem,andadoptingthesystemofobtainingemploymentthroughcompetitionbythecandidates.Intheendthethesispointsoutourstate-ownedenterprisesneedtoreformpropertyrightsystemfurther,clarifytherelationshipsofenterprisepropertyright,improvethegoverningstructuresofcorporation,reformmanagementappointmentsystem,establishthemechanismofselectionandappointmentofexecutivestoformtheexecutivetalentmarket,establishtheappropriatesystemofassessmentandevaluationofperformanceofexecutives,establishthesystemofsupervision,auditionandmanagementofimprovementofachievementbyexecutives,strengthenthemanagementandmonitoringofbusinessexpensesofexecutives.Onlybyaccomplishingtheaboveimprovementstheannualsalarysystemcanbeeffectivelyimplementedinstate-ownedenterprises.KeyWords:Annualsalarysystem;XiamenWaterGroup;State-ownedenterprise12345678910111920501213141516171820051920DembNeubauer19921171“”20022002“”“”“”212223242526272829303132333435363720199817.5%15.2%20.2%41.4%38392004254041424344454647200548495051525354552—35657585960616263646566672002A20059