On Equity Incentive For Listed Company Management In China

Till now, we have many incentive mechanism to mobilize manager's enthusiasm, but failed somewhat. when probing into the reasons, those just took care of short-term incentive, leaving long-term ones in vain. Therefore, how to establish a long-run incentive mechanism, to make manager focus more on long-run sustainable development is an important and urgent task to deepen SOE reform, to promote its development.Equity incentive system is the most effective corporate stimulation system which has been testified by other developed countries. It can effectively de al with the problem of commission and agency conflict by different target functions from managers and owners, promoting interest union between management and shareholders, spurring them to creat more value for owner and society. So, to use equity incentive in the qualified company, especially in the state listed company is urgent. At the meantime, we should use other countries' experience for reference, to perfect the current policies, laws and corporate governance, as to construct suitable internal and external environment for it.This essay is divided into five parts.Part one—preface. This part puts forward the background and significance of this essay and relevant researches by scholars home and abroad and finally, the framework is set.Part two—relevant theories of property, "commission-agency", human capital, incentives, making a theoretical basis for the following.Part three—the domestic practices and comments of the Share Rights Stimulation. Since 1990s,our listed companies have begun to bring in the Share Rights Stimulation System. In this part, the author summarizes and concludes the practices of this system in our listed companies and introduces and comments on the four typical cases of Share Rights Stimulation since the issue of Share Rights Stimulation Management Measure of Listed Companies (case study of G Wanke),hoping to offer some help to make this system perfect.Part four—the practices of Share Rights Stimulation in foreign countr ies. This part introduces the implementation history and present situation of this system in USA, Britain, France, etc. and hopes to be used for reference in our implementation.Part five—the reflection and countermeasures for promoting equity incentive in China's listed companies. the backbone of this essay. Through its implementation, some proposals are raised, e.g. solving insider control; establishing scientific and democratic review system for performance, absorbed by corporate internal controal; cultivating and perfecting securities, strenghtening market effectiveness establishment; establishing competitive professional manager market; and further perfecting relevant laws and regulation.