Research On Stock Incentive Of China Securities Companies

The normative growth of the securities companies is essential to the healthy development of the securities market, as the development of economy and the expansion of the scale of direct financing, the role of securities companies in the operation of modern financial is increasingly significant. As an industry which is relatively concentrated intellectual resources, the high mobility of employees not only promotes the development of the securities industry, but also brings some problems to the management of company. In order to ensure the stable operation of securities companies and to maintain the orderly flow of employees, some securities companies have tried to the incentive-restriction mechanism design as a representative of stock option. Such a mechanism goes by the name of"golden handcuffs"visually by the securities industry; the research on the practice of China securities companies which has carried out the reform of stock incentive has an important theoretical and practical significance.This thesis regards the basic theory of stock incentive as the logic starting point, through the study of the mode and the performance evaluation of stock incentive, analyzes the current situation and problem of the stock incentive of domestic securities companies, and finally we put forward the design of the stock incentive mechanism of securities companies in our country which suits its own characteristic.In the Introduction, we briefly discuss the background and significance of the topics and the frame system and method of the research. Securities companies play a very important role in the development and operation of the securities market, but as high-intensive intellectual property and the high mobility of human resources in the securities companies, it is a very critical problem to seek the orderly flow of employees and establish a sound incentive-restriction mechanism. In accordance with the development of China securities market, after doing some comprehensive studies in the use of appropriate methods, we believe that as the most effective long-term incentive mechanism which can deal with the client-agent relationship, stock incentive can combine the long-term anticipation of employees and the sustainable development of securities companies.The second part summarizes the related theories and literature on stock incentive. First, we introduce the theoretical basis of stock incentive, including the principal-agent theory and the human capital theory, and point out that the birth and development of stock incentive theory, is the process of the conflict and synergetic development between the human capital and physical capital, and the enterprise's stock incentive system is one of the best ways to mobilize the subjective initiative of the human capital owner. Then summarize the literature related to stock incentive, many scholars at home and abroad proceed from the principal-agent theory, do the empirical research on the relationship between executives holding and company performance, although conclusions are various, in general executives holding has different degrees of effect on company performance, and stock incentive is the long-term effective mechanism that can solve the agent problem and improve corporate governance.The third part is the mode and evaluation system of stock incentive. In the practice of the stock incentive system, different companies created different implementation scheme of stock incentive on the basis of specific factors, and designed the corresponding performance evaluation system. This thesis summarizes the mode of stock incentive at first, and introduces the international and domestic modes of stock incentive mechanism, and comparatively analyzes the advantages and disadvantages and the scope of these modes, as well as the characteristics of domestic modes. On this basis, we put forward the stock incentive mode of securities companies in our country which suits its own characteristic, and then introduce and evaluate the performance evaluation index and system of stock incentive. The fourth part analyzes the background and current situation of implementation of the stock incentive of China securities companies. First, we analyze the background of implementation of the stock incentive of securities companies, point out the contradictions of securities companies between incentive system defects and sustainable development, as well as the demonstration effect of stock incentive in the development of the foreign securities companies. Secondly, we analyze the feasibility of implementation of the stock incentive of China securities companies, and explain the reasons why stock incentive system is particularly suitable for the securities business. Then take CITIC Securities as an example to do the empirical analysis and discussion about the practice of the stock incentive of China securities companies, and compare the stock-based stock incentive with the virtual stock incentive mechanism linked with company performance. In general, stock option has some characteristics of low implementation cost,good long-term incentive effect and so on, and it is the most popular in the International. Although more than 80% of the securities companies are developing or have developed the stock incentive program, apart from CITIC Securities, there are no results about other securities companies. And it can't be replicated that CITIC Securities bundled the stock incentive on the occasion of the stock division reform. Finally, proceeding from the current situation of the stock incentive of domestic securities companies, we attempt to reveal the problems and obstacles of the stock incentive system of securities companies from the deeper level, such as the external environment, internal factors and operational technology and so on.The fifth part is the related research on the design of the mechanism of China securities corporation's stock incentive. In view of the main problem existed in the process of introducing the stock incentive scheme in China securities companies, we focus on establishing the implementation support system proceeding from the mode selection, performance evaluation and related system environment, and launch the more systematic analysis with the purpose of putting forward the stock incentive mode that is adapted to the requirements of the market competition and international standards and is suitable for the securities industry and the company's own characteristic, and offer constructive views and opinions for its implementation and application. First, according to the development of China securities companies and stock market, companies can consider implementing"Quasi-Stock Option"when they are unlisted, and carry out general stock option incentive plan after listing, and then institute corresponding Employee Stock Ownership Plan under the premise that the securities companies are generally listed. Secondly, under the circumstances that China stock market is not yet developed, we suggest that the company can adopt performance evaluation index system that combine the Balanced Scorecard and EVA, and consider financial indexes and non-financial indexes synthetically. In addition, the securities companies should establish the stock value management system to improve the operators'performance evaluation system. Finally, we should improve the system environment related to the stock incentive of securities companies.