The Professional Managers Of Private Enterprises Equity Incentive And Organizational Performance Relationship

Private enterprieses are the important parts of the market economy in our country, thus prosessional managers play increasing important role in the management of priavte enterprieses. Stock ownership incentive is a better long term incentive mechanism. It helps to combine the professional managers'interests with stockholders's interests, reduce agent fees, and stimulate the enthusiasm and creativity of the professional managers. This thesis builds a relational model between stock ownership incentive and organizational performance based on Game Theory through document researching, combing incentive theory with the theorical basis of stock ownership incentive, analysing the incentive effect. Through analysing the actual conditions of Quanzhou private enterprises and taking S private enterprise for example to expound, this thesis draws conclusions as follows:(1)Implementing stock ownership incentive can help to promote organizational performance; (2)Since different types of private enterprises have different characters, it needs to use the stock ownership incentive coinciding with the actual conditions of the enterprise. For example, the list companies can adopt the mode of stock options, stock appreciation, or performance shares. And the non-listed companies can adopt the mode of phantom stock options, performance units or profit-sharing schemes;(3)The implement of stock ownership incentive must be impartial, just and open. Only in determining suitable objects and equities, establishing reasonable mechanism of putting options and withdrawing control methods, can it be incentive and confined for the professional managers. The evaluation index system of organazational performance must follow the principle of SMART; (4)Only in the shareholders and professional managers chosing incentive policies, can both benefit from that, can both and enterprises achieve win-win development. Through the research on the relationship between stock ownership incentive and organazational performance of professional managers, this thesis may bring some beneficial lessons for motivating the professional managers of Quanzhou private enterprises, and promoting organaztional performance.