The Equity Incentive Formula And Its Effect Of The Shandong Yaxing Chemical Co. Ltd

The equity incentive has owned more seventy years history in the foreign capitalism market. In top 500 in the world, most of them had taken the equity incentive system. It reflects the tendency of the development in capital market. When we join the WTO, the Chinese companies are under the pressures and receive the competition from foreign company. The situation forces us to get in touch with the world capital market and use the advanced practical and concentrated system of the other countries in order to compete with the foreign company in various areas.As an effect method of incentive, the equity incentive is adopt by many enterprises. For a plenty of listed companies in China, the equity incentive is the scientistic and effective mode of incentive. Because it is not only make the benefit agreed between the owner and manager and solve the problem of principal-Agent, but also cut the cost of operation in company, increase economic efficiency and attract the top talent. But in our country, the equity incentive is still young enough. Because of the legal system and company system, there are many problems when some listed companies adopt the equity incentive. The long-interest cannot be ensured. It is not the aim when companies adopt the equity incentive and a lot of companies become lost. We have a long way to use the equity incentive.In the paper, as a case of yaxing chemical Co.Ltd, I expound my views as followings: Firstly, introduces and recalls some relative theories about the equity incentive, for laying the theory foundation of the following case. Secondly, introduce the history and production market of yaxing Group. Thirdly, analyze the environment that yaxing adopts the equity incentive, and then I find many problems when the company designs the equity incentive. Meanwhile analyze the importance and significance about this listed company. Fourly, according to the actual situation of the group, association with the legal policy and state system I design the equity incentive scheme. At last, writes some relative problems about the equity incentive formula.