Entrepreneur Inspire With EVA

By debt-equity swap and transitional share-holding, Financial Asset Management Company becomes the shareholder of company and sets up the necessary management and organization structure upon the modern enterprise model. Definitely, it is the improvement of large or middle size state owned enterprise reform. However, if change made is limited in the organization and management structure, the control, motivation and supervision function can not be fully utilized. Furthermore, it would not be successful by debt-equity swap and transitional share-holding to improve the reform of state owned enterprise. This article focuses on how to improve competition ability and operation efficiency, prevent the insider control, decrease the cost of principal agent, and motivate high level management team.How to combine the benefits of the company management and the benefits of shareholders and how to translate "insider control" style into to shareholder control style is the key solution of agent to these companies.EVA based motivation system provides management team an income mode which is similar with that of shareholder. This article is trying to use the EVA index, which utilizes EVA bonus plan to motivate the management level to focus the long term development plan for the company and tie up with their own benefits, eventually maximum the value and wealth of the company.By analyzing the current situation of debt-equity swap and transitional share-holding company, this article finds out the problems in motivation of management level, and researches the theory of those problems; in addition, provides real world cases and plans of how to motivate management level. This article analyzes the EVA management system, however, as the EVA management system is widely related with the management of companies, the writer only focus on the bonus motivation plan in EVA management system...