Eva Equity Incentive Performance Evaluation

This essay studies on how to determine the performance assessment guideline for the managers under the stock option incentive plan of listed companies. This essay concludes that the EVA is the most appropriate performance assessment guideline by comparing among the market performance basis, traditional accounting basis and new EVA basis. The essentiality to study this issue is because the share option incentive plan of listed companies is more and more popular in the China's market, but the performance assessment guideline at present is mainly based on traditional accounting basis, it's very essential to seek for scientific and reasonable performance assessment guideline.The issue is on the ground of the trend for stock option incentive plan and EVA basis is outstand among many kinds of options, it is the best method to explain the process of increasing the shareholder's value within all the financial assessment guidelines.There are four parts of this article: The first part points out the background of this research and the direction of the article. The second part summarizes the previous research results on stock option incentive plan and performance assessment. The third part compares the two mainly used basis: the traditional accounting basis and the market performance basis. The last part shows how to use the stock option incentive plan based on EVA in china.