Study On Reduction Of State-owned Stocks And Establishing Of Executive Stock Ownership Incentive Mechanism

Currently, reduction of state-owned stocks and stock ownership incentive for state-owned enterprise managers are two crucial issues in reforming state-owned enterprises. Redirecting part of the state-owned stocks to managers who are directly responsible for the survival and development of the enterprises is an institutional innovation, which will improve the efficiency and the quality of state owned assets. It will also greatly advance the reform in state owned enterprises. The paper tries to conduct a systematic study on the issue of reduction of state-owned stocks and establishing incentive mechanism of stock ownership for managers in order to find ways to improve the whole efficiency of state-owned enterprise reform.The paper is mainly divided into four parts.The first part is the preface of the whole essay, introducing the connotation of the concept of reduction of state-owned stocks and stock ownership incentive for managers and discussing the theoretical background and policy basis of the two.The second part profoundly analyzes the rationality and feasibility of parallel construction of reduction of state-owned stocks and establishing incentive mechanism of stock ownership for managers. According to system theory, these two issues have coordinated requirements, and therefore can produce coordinated effects, which provide rational basis for parallel construction of them. Because of the practical feasibility, parallel construction of the two is an effective means to improve the basic defects of state-owned enterprise ownership institution and perfect the management of state-owned enterprises.The third part indicates that in the course of parallel construction of reduction of state-owned stocks and stock right incentive for state-owned enterprise managers, there are many difficulties and obstacles in problem identification and policy implementation, which affect the smooth construction of the two and its efficiency and therefore need serious consideration.Aiming at solving the obstacles in the current stage, the fourth part proposes specific suggestion and measures on how to reducing state-owned stocks and establishing stock right incentive for state-owned enterprise managers. The most fundamental significance of parallel construction of the two is that it solves the issue of stock source for state-owned enterprise managers. In the perspective of implementation, the issue of the quantity of the stock, price, capital and specific plan must be solved in order to smoothly advance the parallel construction of the two.