Analysis Of The Legal Issues Of Equity Incentive System

Stock-based Incentive is a very effective corporate stimulation system which can effectively solve the problem of commission and agency, and can creat a long-term incentive system in the company. But Stock-based Incentive also can cause bad effects. So we should discover a method to decrease the bad effects. With the practice of Stock-based Incentive and the relevant laws and regulations enacted by the local government, Stock Incentive has experienced a rapid development in China recently. I sincerely hope that, by writing this thesis, I can give some useful and pertinent information or suggestion on the practice of the Stock Incentive as well as the legislative work.The whole thesis is divided into four chapters as the following:Chapter 1 is the general study of the Stock-based Incentive System. This chapter concludes the definition of the Stock-based Incentive System, the type of the Stock-based Incentive System and the legal characteristics of the Stock-based Incentive System.Chapter 2 discusses the American Stock-based Incentive system.Chapter 3 discusses the condition and problem of Stock-base Incentive in current in our country. The author has also provided some suggestions to perfect the Stock-base Incentive in our country.Chapter 4 makes an example of the GOME Electrical Appliances Holding Limited's Stock-based Incentive plan.