The Design Of The EVA Shares Option Incentive Scheme

Options incentive is the 1950s things;the Main form is the stock options,The current theory and practice in the West has been very mature and has playedthe indispensable role in the economic development. The plan in the countryhas just begun, but with the modern enterprise system deepening, we couldimagine that it will be rapid promoted and will play its role in the processof growth of our business. When designing options incentive scheme, there aretwo basic technical questions: First, how to assess the performance of theoperator;Second, how to design the plan according the performance. The original stock options Incentive plan use the stock price as thecriteria of operator's performance assessment;accord the stock price to makethe future exercise price, but in reality there are many irrational factors.Aiming at those two points, this article propose a plan of options incentivebasing the EVA evaluation indicators. We hope to give a certain theoretical guidance and reference meaning forour country options incentive. This article use compare methods and analysisthe obstacles in practicing the current options incentive scheme all over theworld.With those points, I introduce EVA theory into incentive schemes to designEVA shares options incentive plan. The EVA shares options is the part of thelong-term remuneration system in business, which draw on the principles ofoptions, features and operational methods. it base on the process of stockoptions Incentive and improve to its : Under different circumstances of theenterprise ,the incentive plan design and calculate EVA shares price andfocus on the "win-win", concern on the increase of the company value;it relyon EVA Shares Price as a criteria to value the performance replacing stockprices, while on EVA virtual shares replace stock as the subject of options,and design a new exercise price for a more effective incentive.