Wei Jie, Professor of economics and management of Tsinghua University, said in a speech today that the development of modern productivity has made the corporate governance structure change from defining the relationship between owner and operator to defining the relationship between human capital and monetary capital.

In the past, human capital, as a manager, has been on the stage of history.

Wei Jie said that we have a lot of misconceptions about the corporate governance structure.

The corporate governance structure we understand is centered on defining the relationship between the owner and the operator. Therefore, it is emphasized that the general manager and the chairman are separated. The chairman is responsible for the company's major business decisions. The general manager is responsible for the daily management of the company, while perfecting the board of directors and the board of supervisors.

But in fact, this set of things is out of date.

He explained that in the past 10 years, the above connotation of the corporate governance structure has begun to be abandoned in large scale in the past 10 years. Instead, it focuses on how to deal with the two kinds of capital relations: one is the capital of the investor, the other is the money capital; the other is the human capital, which refers to the two kinds of people in the enterprise -- the technological innovator and the professional manager, which are different from all other human resources in the enterprise.

In the past, human capital as a hired laborer has now reached the stage of history, and corresponds to monetary capital.

Wei Jie said that to define the relationship between the two capitals, the central content is to create an incentive mechanism and constraint mechanism for human capital.

The former respects the status and power of human capital, and the latter respects the status and power of investors.

The establishment of these two mechanisms has become the main content of modern corporate governance structure.

He said that the incentive mechanism of human capital mainly consists of 3 aspects, namely, economic benefits, and those who have no capital in the enterprise can also have property rights.

The two is power and status motivation.

It produces 3 phenomena: first, the emergence of CEO, which is not simply a change of address. CEO has the power of the general manager and the chairman from 40% to 50%, so that the power of the general manager and the chairman of the board is no longer separated but set in CEO.

Secondly, the emergence of enterprise strategic decision committee is composed of jurists, managers, economists and other human capital in society.

Thirdly, the emergence of independent directors is also one of the important signs of human capital's role.

Three is cultural inspiration.

Wei Jie talked about the two aspects of internal and external constraints.

The former includes articles of association, contract constraints and constraints embodied in incentives, such as legal constraints, moral constraints, media constraints, market constraints, etc.

Wei Jie said that the pformation of the connotation of corporate governance structure has already been felt by some domestic enterprises with strong sense of reform.

He analyzed that this change would accelerate after joining the WTO, but it would not be too fast, at least 3 to 5 years.