Correlation With The Company's Performance Share Incentive

Incentive is the heart, the spirit of the process, the development of incentives to motivate a person also tortuous, with the gradual improvement and development of the corporate form and the system, in the form of incentives are increasingly diverse. Depending on the subject of incentives implemented, can have a lot of categories, and equity incentives is relatively common, but also a more effective incentive system.Incentive stock options were originally produced ESOP, employees become shareholders of the company, share the company’s results of operations, while helping employees avoidance, allowing employees as a corporate identity of the owner, to participate in the corporate governance process to operate.With equity incentive theories continue to improve and develop, but also in the form of equity incentive continuous improvement, management buyouts, stock options, stock appreciation rights. As a solution to the principal-agent problem is mainly theoretical, the implementation of equity incentive plan to a certain extent, solve the "moral hazard" shareholders of many listed companies and the actual operators between "adverse selection " problem. Raised from equity incentive theory, theory and practice issues related to incentive stock options to be studied, especially for the implementation of equity incentive changes correlated with the performance of the company on the line, many studies. However, the question whether there is a correlation between the equity incentive and corporate performance, has not a conclusion. Therefore, in order to recommend a comprehensive understanding of my incentive stock options, incentive and improve the performance of the company’s equity-related research, this paper argues is necessary to study.For these purposes, the process of writing this article the results of previous studies of absorption, using the method of empirical research, with several domestic implementation of equity incentive representative of several listed companies in the industry as the research object, and equity incentive Research related to the company’s problems. This paper is divided into five parts:I. Background and Significance of Incentive Option; Second, the equity incentive overview; Third, equity incentive instance in the study abroad; Fourth, the study design; five, our equity incentives and future trends recommendations. Ultimately concluded:implementation of equity incentive for improving performance of the company to a certain extent. At the same time, strengthening the company’s governance structure, improve the system, and better promote the company’s performance.