Some Legal Issues On The Management Of Equity-Based Incentives Of China's Listed Companies

Company is becoming more and more important in our daily life, company affect to our society develop and daily life more and more important. Since the introduction of China's management of equity-based incentives and has been rapided in china step-by-step, china's level of corporate governance and the company's rapid growth played a important role, at the same time, the economic of china had a rapid growth. The management of equity-based incentives of corporate governance as an important link we need to pay more attention and research, especially in today's China's securities market and professional managers of the market situation does not improve, we need to combine the reality of the problems encountered in combination with the reality of our country are given a solution to the problem. In this paper, equity-based incentives from the emergence of management as well as the reasons for the existence of reality on the issues, from the actual situation in China to find ways to solve the problem and some of their own recommendations to improve. In addition to the full text of the introduction and conclusions, is divided into four chapters.Chapter one is management of the basic issues equity-based incentives". This chapter including the concept of management shareholding and the pattern and the significance of the management of equity-based incentives. This part starts at the development of the form of the company, the development of the form of the company set up at the progress of society, at the same time, the company's operating become specialization cause the emergence of management, in order to enable the management and the interests of the company in line, equity-based incentives appear and management shareholding. Secondly, analysis management shareholding from the theory. There are many patterns of management shareholding; different company chose different pattern to incentive the management, makes the effect of incentives to the best. Management shareholding has much significance to the company, management shareholding can reduce agency costs; integrate of the company's human resources; improve the company's performance and governance.Chapter two is"profile of the United States equity-based incentives and learn from the experience of well-known enterprises". Section I is the United States, a brief introduction of equity-based incentives, in the fifties the United States began to consider the application of the equity of listed companies incentives to improve the management of creativity and enthusiasm, and with the passage of time and the company's development of different companies started to experiment with different incentive model, including the scope of targeted incentives changed a lot, a senior management based on targets for the incentive, another is the vast numbers of workers to the incentives can be included in the scope of the object. Section II is the management of the United States well-known enterprises from the experience of equity-based incentives. This paper analyzes the IBM Corporation and General Motors Corporation's management stake in the details of all aspects of incentive, and how the implementation of the management of our equity-based incentives to draw on relevant experience, that is, the establishment of special pay to the Management Committee and to guarantee their independence, so that they can not interfere with the premise of the outside world, to design equity-based incentives for the management of all aspects of the needs of the conditions, at the same time to design a good system of supervision and management to strengthen the supervision of the Management Committee remuneration; at the same time we must also consider the implementation of performance management should be comprehensive, that is, to improve the performance evaluation standards; In addition, to strengthen supervision to control the risk of moral hazard.Chapter three is"Management of listed companies in China Analysis of equity-based incentives". First, introduced an incentive mechanism in China's course of development, in the past, china is one of the planned economy, government business is essentially independent of the accessories do not have more right to operate, not to mention the freedom of enterprise equity-based incentives to implement measures to improve governance, with the reform and opening up to, slowly started our company in line with international standards as well as the implementation of the management of equity-based incentives. Second, china's listed companies analyze the status of equity-based incentives. The author of this from different angles, an analysis of the current situation, incentive from the choice of mode of analysis in terms of the implementation of stock options and restricted stock the company is majority; from the perspective of industry sectors to analyze the results of the implementation of the management of the manufacturing industry is encouraged by the fact that shares more. Final, management of listed companies in China there is the issue of equity-based incentives. Management of equity-based incentives in China is not a very long time,however, the implementation of this period of time or point of view there is a lot of problems, the main problem is: First, corporate governance structure is irrational, most of China's listed companies from the restructuring of state-owned enterprises from the previous,the present situation is such listed companies is still the controlling shareholder of the country or state-owned legal person shares, this is"Controlling Shareholder"of corporate governance makes the formation of the "insiders" control, this makes the management of equity-based incentives can not play its original purpose and become a mere formality incentives. Second,unreasonable assessment indicators. A lot of listed companies is the implementation of the evaluation indicators of the net assets of the assessment methods yield, although this assessment methods and international standards on the assessment methods, however, such indicators of a single test is not conducive to assessing the management, often in order to make the management of their own interests and the pursuit of short-term performance, indicators such as assessment and can only show that the management of the past, the benefits for enterprises, and will not explain what the company's performance. Third, information disclosure of listed companies as well as not fully competitive market, professional managers have not yet formed. equity-based incentives can not be separated from the mature professional manager market, if there are no mature markets of professional managers, management does not come from external pressure, not good management to reduce the goals and objectives of the gap between the owner. Forth, china's securities market is not perfect. Securities market to improve the management of equity-based incentives to implement an important basis, as a result of the securities market imperfections, a lot of time upgrading the performance of the company is not able to bring the company's stock price rose, as the stock price does not reflect the value of the company, of course it does not reflect the extent of management's efforts, stock price changes will be lost on the management of incentive and constraint function.Chapter four is"China's listed companies to improve the relevance of equity-based incentives". In this chapter the author from a different perspective on the management of equity-based incentives put forward a comprehensive proposal, from the inspired choice of model; up to improve the control of management; listed companies to improve the governance structure; the external environment in terms of improving the.