The Research On Equity Incentive Plan Of Private Listed Companies

Good equity incentive mechanism can fully arouse the enthusiasm of the managers, and combine the interests of the shareholders, the company and the managers. It can also eliminate the managers'short-sighted, and let them care more about the long-term development of the company. At the end of 2005, China Securities Regulatory Commission enacted"The Measures Governing Equity Incentive Plans of Listed Companies (For Trial Implementation)". It caused a surge in the field of academe and practices, and there have been more and more researches on equity incentive mechanism of listed companies. But most researches are about the listed companies or the state-owned list companies. There is little research on equity incentive of private listed companies. In these years, the rapid development of private economy has been the nucleus power of our national economic development. As the elites of private companies, the powers of private listed companies are stronger. Because of their strong ability to get profit and to increase the capital, private listed companies have become an important group in china securities market. So, this thesis studies on the equity incentive of private listed companies.The thesis is divided into 3 parts.Combining the theory of equity incentive, the first part analyzes the necessity and the feasibility of equity incentive of private listed companies based on the present condition of private listed companies, and points out the current problems private listed companies faced with.The second part is about the designs on the major factors in the equity incentive plan of private listed companies. Combining with the practice of private listed companies, it mainly designs the objective of equity incentive, the mechanism of equity incentive, the line and the distribution of the equity incentive, the sources of funds and stock, the price of exercising, the period of validity and the exercising proviso.As the performance evaluation system plays an important role in the equity incentive plan, the last part individually discusses about that. First, it analyses the shortages on the indicators using in the practice of private listed companies. Then, it introduces two popular performance evaluation systems, BSC and EVA. At last, it designs a performance evaluation indicator system with financial indicators and non- financial indicators.The main contributions are as follows:1. There have been 18 equity incentive plans of private listed companies. The thesis studies them systematically and completely, and analyzes the incentive role and the shortages. The thesis tries to give some advices to the private listed companies.2. The thesis discusses the indicators of the performance evaluation system, designs a performance evaluation indicator system with financial indicators and non- financial indicators.