The Discussion On Equity Incentives In State-owned Holding Listed Companies

Equity incentive mechanism tie in the owner and manager together, as a result, the agency cost has been cut down while managers have been motivated effectively in a long time, then achieve the unify of the maximization of value by shareholders and managers. The subject and environment of equity incentive in our country are differ from the western developed country, so it would be remarkable to explore a equity incentive mechanism fit for our country. Theoretically, study on the problems exist in equity incentive mechanism of state-owned listed companies would be beneficial to the perfection of stimulation discipline theory, while the stimulation discipline theory is an substantial part of corporate governance theory, the perfection of stimulation discipline theory will deepen corporate governance theory, offer theoretical basis for the establishment of modern enterprises system; practically, study on the problems exist and reasons in equity incentive mechanism of state-owned listed companies, and learn experiences and lessons from America then put forward advices, it would be advantageous to the design of equity incentive arrangement, prevent the risk of equity incentive mechanism, help to formulate strategy development project and improve company performance.This paper adopts ways of quantitative analysis as well as qualitative analysis, and normative research normative research methods. Firstly, introduce the conception and general foundations of equity incentive; secondly, describe the implementation situation of equity incentive project in stated-owner listed companies, research on the problems existed and the causes, learn experiences and lessons from America then put forward advices. The data quoted in this paper are come from GuoTaiJunAn data base and research paper as well as website.This paper has research equity incentive projects of65stated-owner listed companies that announce from October2006to December31th2011. There exist problems such as definition of stock sources is obscure that it will cause loss of state assets、the management control of equity project design and implement、initiate moral hazard、lead to unfair distribution of income and long-term incentive effect is not obvious. The main reasons are unreasonable of corporate governance structure、 unscientific of performance appraisal system、lack of competitive managerial labor market、imperfection of equity incentive supervision mechanism and the weak-form efficiency of capital market. After referring to experiences and lessons from America listed companies, the stated-owner listed companies in our country should diversification the models of equity incentive as well as combine equity incentive mechanism with more ways of long-term motivation. Besides, perfect the corporate governance structure、establish EVA system and competitive managerial labor market、 strengthen equity incentive supervision and raise effective capital market will also be very important.The innovation of this paper is that it analysis the implement of equity incentive in every detail. The insufficient of this paper is that the whole paper is lack of empirical analysis.