Listed Company Equity Incentive Plan Design In A-Stock Maket

In the international capital market, equity incentive is an effective mechanism of listed companies long-term encouraging the management. As an emerging stock market, the development and application of equity incentive in China is the topic which experts and scholars pay more attention on. Equity incentive is an innovative compensation incentives system which is gradually developing with the separation of corporate ownership and control right, and the appearance of principal-agent costs.Equity incentive has been maturely applied abroad, but the history of China’s listed companies applying equity incentive is Shorter. With the completion of China’s non-tradable share reform, China Securities Regulatory Commission promulgated "Listed Companies Equity Incentive Management Method (Trial)"in January1,2006, and issued " Equity Incentive Memorandum1.2.3file" in2008, so listed companies have a policy environment on equity incentive in China. But the equity incentive plan design is the key to successfully implementing equity incentive.This article introduce the status of the listed companies in China implementing equity incentive at present, based on summarizing and reviewing the development and application of China’s equity incentive system, selects98listed companies as a sample which successfully implemented equity incentive until December31,2010, uses comparative analysis method to analyze equity incentive of the different modes, and detailedly resolves the various elements of the existing equity incentive program to get a resul that though equity incentive in our country has a lot of try, the effect of equity incentive do not effectively play, and equity incentive programs exist the problems such as having a singlemode selection, unreasonable selecting performance evaluation indicators, shorter validity period and waiting period, low exercise price,which makes long-term incentive of China’s listed companies in the equity incentive lack and is prone to lead short-term behavior of the management.Finally, it recommends the partially optimized advice about the equity incentive plan design and providing an effective market for implementing the equity incentive.