Executives Of State-owned Listed Companies, Equity Incentive

During the enterprise reform in our country, how to encourage the managers to work hard is a very difficult problem. From early days of innovation to now, the government has adopted many kinds of incentive mechanisms to encourage the executives. But the result is not very well. The basic reason is that those incentive mechanisms are short-term incentive mechanisms. Long-term incentive mechanisms are scarce. It is an urgent work of state companies' innovation to build an effective long-term incentive mechanism to encourage the managers to care for the enterprise's future development. Equity Incentive mechanism is a measure of long-term stimulation, whose effectiveness has been proved by the practice of many enterprises in the developed countries. It's aligning the interests of managers with those of shareholders and to incentive managers to maximize shareholder's wealth and social value. So, to use equity incentive in the qualified company, especially in the state listed company is urgent. For this, the paper takes an example of restricted stock plan of Baosteel to analyze some issues.The paper use case study and theoretical study to do the research, and the case study is the dominating method. In the part of the analysis of equity incentive for the executive of Baosteel, it makes use of case study to research. In the part of the suggestions of the circumstance construction of the equity incentive, theoretical study is used more.The paper is composed of four chapters. The first chapter is a prologue, including the background and significance of the paper, the research method, and its framework and shortage. The second chapter is the theory summary, including the theories of equity incentive and related researches home and abroad. The third part is the core of the paper, where there are a series of researches. It includes the analysis of the necessary and the feasible of the application of equity incentive for the managers in Baosteel, the mode selection, the analysis and appraise of the restricted stock plan of Baosteel, and its effect. The last part is the suggestion about circumstance construction of equity incentive for the managers combined with the analysis before.The paper has two innovations. The first one is that it regards the equity incentive as a systemic project, and does the research combined with the actuality of Baosteel. The second one is that it gives all-around suggestions bout circumstance construction of equity incentive, which makes for the further popularizing of the equity incentive.