This paper takes the current situation of compensation incentive system of Chinese state-owned enterprises as the main body of research, analyzes the problems and causes of the current compensation incentive system of Chinese state-owned enterprises, and puts forward the strategies to systematically optimize the compensation incentive system of Chinese state-owned enterprises. The key to solve these problems is to further promote the reform of compensation incentive system of Chinese state-owned enterprises, enhance the vitality and competitiveness of enterprises, and promote the sustainable and healthy development of enterprises.
