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The Aaa Equity Incentive Discussion And Planning

Posted on:2010-03-16Degree:MasterType:Thesis
Country:ChinaCandidate:X D YuFull Text:PDF
GTID:2199330338470267Subject:Business Administration
Abstract/Summary:PDF Full Text Request
The competition and company scale is increasing with the development of global economic; it becomes a pivotal factor of how to improve enterprise management level. It distributes ownership right as a result of strengthening capital force through issuing a large number of shares, so the world's large companies begin issue share right incentive plan to inspire company management staffs. Share right incentive plan links employees and the company's performance with people's profit-driven nature, it gives enterprise managers a certain degree of economic rights to enable them can be shareholders status to take part in the process of company's decision-making, profit-sharing and so on. Share right incentive plan was born in United States, it becomes more sophisticated, and successfully been applied to our country. It plays a big role in reducing agency costs, stimulating staff talent, improving corporate governance mechanism and human resource, promoting company's performance, increasing shareholder wealth. As a small high-tech companies, Chengdu AAA faces with many management problems during the process of development and growth, the most prominent one is lacking of humane talent ,how to effectively motivate employees to enhance their belonging feeling to the enterprise becomes the key decision-making of AAA company. This article applies Share Right Incentive plan to AAA practice in order to design a rational system to solve current issues.The theory of share right incentive has a profound development economics, management theory. This paper reviews the theoretical basis of share right incentive by summarizing modern enterprise theory, contract theory, principal-agent theory, motivation theory and so on, and then analyzes the development process and the latest developments of this theory. Based on this theory, the paper introduces the implementation background of AAA company's share right incentive plan, especially analyzes the strengths and weaknesses of AAA. AAA choose Anti-thunder products as a breakthrough, it has some unique advantages in technology and products, but it still has some problem in human competitiveness. Following the above analysis, it makes a detail plan of AAA company's share right incentive. And then, this article also makes a evaluation of this plan, it increases the company's business and cohesiveness as well as talent attraction, but it also has some problems, such as the vague of distribution standard, the lack of an incentive mechanism and so on. Finally, this proper makes some strategies to solve this problem: establish a multi-level, multi-mode incentives system; link incentives plan with performance assessment; flexible share right incentive plan; focus on incentive plan innovation.
Keywords/Search Tags:Share Right Incentive, Theoretical Basis, Program Design, Effectiveness Results, Improvement Orientation
PDF Full Text Request
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