A Study Of Stock Ownership Incentive Of The Public Company

Stock Incentive Compensation，born in the United States, is called the "golden handcuffs" of theexecutives of the public corporation,it has played a prominent role in attracting talent employee andretain talent employee, because the Stock Incentive Compensation theory is very simple, under certainconditions corporation give the executives some stock, in order to incentive them work hardly, theexecutives have experience, management technology, they can lead the company to obtain goodperformance. It’s a good system on incentive the executives, and it need some others’ help. Theadvantages of the stock incentive compensation system are significant, but any system really plays itsefficacy, perfect system is the only way which must be selected. System started late in China equity,the law system is not perfect, so in practice there are many troubles, and gradually these troublesmake stock incentive compensation become executives’ equity money-making tool, and become aserious violation of company and shareholder interests, but also for China’s securities market stable.Therefore, the perfect legal system environment is key of Stock Incentive Compensation of China.Through studying the theoretical foundation of Stock Incentive Compensation, get StockIncentive Compensation’s advantages on optimizing enterprise governance structure, promoting thelong-term development of the company and attracting many advantages of human resources, StockIncentive Compensation system play a huge role for the prosperity of securities market in China, butthe system itself value in practice because is difficult to reflect, Stock Incentive Compensation is acomplex system, it needs many norms and systems, to ensure its effectiveness.Through the analysis of China Stock Incentive Compensation legal and the problems in practice,summing up the main problems currently of Stock Incentive Compensation are normative legalsystem is too general, the accounting treatment of the Stock Incentive Compensation reducecorporation’s profits and income tax provisions effect the effect of Stock Incentive Compensation.These problems have seriously restricted the application of China’s Stock Incentive Compensationsystem in practicing, therefore, improving legislation technology is important.There are some advices of Stock Incentive Compensation in China, make the Stock IncentiveCompensation to be more useful and build better legal system, and emphasis on solving troublesof the illegal acts of the Stock Incentive Compensation in the judicial way.