A Design Of The Stock-right Incentive Plan Of The SJL Property Management Company

The separation of ownership and management power is a hallmark of modern corporate mechanism. During the period of restructuring and reforming the State Owned Enterprises ("SOEs") and establishing modern enterprises mechanism, how to make owners of state equities and assets actively exercise their rights has become a crucial issue to the success of reform and development of SOEs.According to a resolution adopted by CPC plenary session, diversifying equities is conductive to perfect corporate governance. Moreover, it emphasizes that except few state-owned monopoly enterprises, corporations invested by diverse entities distinct in ownership structure are encouraged. Facts prove that equities incentive plan is an effective method to comply with above-mentioned CPC resolution.Equities incentive plan includes employee share ownership, stock options, and other patterns. By researching the definition, principles, and implementing methods of equities incentive plan, the author takes the SJL property management company as an example and designs of the stock-right incentive plan. At the end of this paper, the author not only affirms the equities incentive plan of SJL property management company, but points out certain problems and difficult points of relevant practice of the plan as well. Besides, by putting forward some advices and strategies for dealing with above problems, the author hopes they can also be used for reference for the companies to motivate their employees, especially those from managerial level and key technical staffs, in a scientific and reasonable manner.