An Empirical Study On Equity Incentive In Chinese Listed Securities Companies

Under a global circumstances that the seperation of a company’s ownership and managership became more and more popular, most listed companies choose equity incentive as the core method to stimulate their managers. China’s enterprises have begun the proeess of trying to use equity incentive system since1990s, especially in the listed companies. The promulgate of "Company Law (Revised Edition)" has paved the smooth way for the implementation of equity incentive system.As a vital subindustry in Finance, the securities industry is crucial to China’s future reformation in Finance industry. Also, as a knowledge-intensive industry, the high-qualityed manager team is key for a company’s future development in this industry. China’s securities companies are mainly germinated from the nation-holded companies. Lacking of senior management’s long-term incentives leads to a lack of the enthusiasm and initiative for the senior management in a long time. Therefore, to establish the equity incentive system makes for stiring up the senior managers’ enthusiasm and initiative, making the interests of senior management and the company’s long-term development objectives in to convergence, mobilizing the management staff to maximize shareholder interests, and thereby increasing their own rewards.This paper use CITIC Securities whice has already implemented the equity incentive system in listed securities companies as the research sample, and set other ninteen listed securities companies (Hongyuan Securities, Northeast Securities, Guoyuan Securities, Guohai Securities, Guangfa Securities, Yangtse Securities, Shanxi Securities, Western Securities, State Golden Securities, Southeast Securities, Haitong Securities, Merchandise Securities, Pacific Securities, Industrial Securities, Soochow Securities, Huatai Securities, Everbright Securities, Founder Securities) as reference frame, through comparative study, analysis the performance of CITIC Securities equity incentive system. According to the empirical research, equity incentive has positive effect on CITIC Securities’incentive system. Besides, based on the entire securities market in China, this paper provides some reference for the implement of equity incentive system in other listed securities companies.