Research on the Executive Performance Evaluation Model of Large Energy Enterprises

Abstract

Accurate performance evaluation and scientific compensation structure are significant to solve the dilemma of corporate governance principal-agent and realize the long-term benefit sharing between executives and shareholders. This paper takes BP as the research object, analysing performance evaluation model and compensation structure of BP's executive. The performance evaluation model has six factors which are safety, reliable operations, financial performance, total shareholder return, return on average capital employed, and strategic priorities. Indicators, weights and evaluation criteria of performance evaluation are constructed in the model. Algorithm for computing compensation structure is also provided.