Research On The Equity Incentive Of Agricultural Listed Company

Issues on equity incentive have been paid more and more attention by listed companies, investors, governmental stock supervision departments and all the other relevant groups. Under the background of the entire circulation time, the research on the equity incentive of the agricultural listed companies will encourage the agricultural listed companies to raise incentive effect while formulating the equity incentive plan, and provide a reference for the relevant governmental sections to improve the equity incentive approaches of the listed companies, thus to guide the equity incentive conduct of the listed companies, standardize the incentive system, fully arouse the enthusiasm of the listed company operators, institute a sound mid-long term incentive mechanism combining stimulation and restriction.This paper does a systematic review on the research literatures home and abroad and combing on the theoretical basics of equity incentive, introduces the current situation of the agricultural listed companies in China, analyzes their existing problems and the major causes, which are mainly manifested in the less of agricultural listed companies implementing equity incentive, the low incentive conditions, the high incentive cost and the high excising risk of incentive targets, and the short-term behavior of equity incentive. This paper finally proposes specific counter-plans on both the design of equity incentive and the construction of equity incentive environment.The research in this paper shows that the environment construction of equity incentive is the prerequisites that guarantee to exert the validity of equity incentive of the agricultural listed companies. Under the existing conditions, the reasonable design scheme of Chinese agricultural listed companies should be to adopt the plan of restricted stocks and not other plans such as stock option and stock appreciation rights (SARs). The research also shows that agricultural listed companies should adopt a dynamic equity incentive plan of internal and external performance evaluation indexes. The external index uses EVA as performance evaluation index, and the internal index mainly uses the balanced scorecards as the internal performance evaluation index. Besides, the time, target and strength of equity incentive should be reasonably designed, thus to exert the more validity of equity incentive of the agricultural listed companies.