Study On Management Equity Incentive Of China Listed Companies

Equity incentive is a reward system, which is emerged in the West in recent 50 years and used to inspirit enterprise management. After decades of innovation, development and perfection, it is obtained people's approval gradually. It is applies massively in enterprise's management practice, and has achieved great success. As an effective long-term incentive mechanism, management equity incentive has been partly proven by theories and demonstration. The primary goal of executive equity incentive is to align the interests of managers with those of shareholders and to inspirit management to maximize shareholders' wealth and social value.Since 1990's, domestic researchers and companies begin to investigate this kind of incentive mechanism and put it into practical application. Meanwhile there have been a lot of articles on how to design, improve and extend the implement of equity incentive mechanism in literature. In more than 10 years, China has conducted the unceasing research, the exploration and the practice about equity incentive. With the advance of the equity division reform and the Promulgation of The Measures Governing Equity Incentive Plans of Listed Companies (For Trial Implementation), an increasing number of listed companies will put equity incentive plan, especially equity incentive plan for management into effect after the completion of the equity division reform. Therefore, studying on the management equity incentive of listed companies in our country in nowadays has practical significance.The research on company's management incentive equity, either from the theoretical or empirical, has originated in the West. However considering the present development stage of Chinese economy, one may doubt this kind of incentive mechanism may bring the same satisfying result in Chinese practical environment just as it did in its western application. As we know, although equity incentive has been well developed, its application situations in China would be quite different from its western counterpart. In order to study the management equity incentive in China's listed companies better, the paper will summarize the well-known foreign company cases with successful management incentive, do the contrastive analysis with the characteristics and problems produced in China's management incentive equity, on the basic of empirical research in the data of the enterprises that announced implement equity incentive the promulgation of The Measures Governing Equity Incentive Plans of Listed Companies (For Trial Implementation), put forward some suggestions on how to improve the management equity incentive mechanism and strengthen its role.