The Manager Incentive Model And Implementation Strategy For Henan A Real Estate Company

Founded in2001, Henan A real estate company is a group company whose business covers residential development and sales, construction general contracting, fire control engineering construction, construction supervision, project management, mining investment, equity investment and other areas. With the company’s rapid development and the changes in the external environment of real estate industry, a lot of problems are exposed relating to Henan A real estate company’s incentive mechanism, such as the shortcomings of imperfect management structure, the information asymmetry between owners and managers, the poor internal incentive and low competitiveness of new talents. These problems have been hindering Company A’s long term development seriously. How to solve these problems with a new incentive&restraint mechanism has become the obstacle in the way of the company’s second leap.Based on corporate management theory, this paper takes reference of the developed incentive theory and proven experience all over the world and thus is able to have a systematic study of company A’s incentive mechanism and implementation strategies. First, through the comparative study and analysis of the top domestic real estate companies’ incentive mechanism, this paper reveals the problems in company A’s incentive model and the cause of these problems. Then, referring to common models of incentive mechanism and with the analysis the influencing factors of this model, this paper proposed the incentive principle and guideline for Henan A real estate company as well as a comprehensive incentive frame including EVA performance-oriented annual salary system, virtual equity option and other welfare. Furthermore, this paper develops the detail incentive plan of this frame. The last part of this paper provides the implement strategy of this new inventive model, including the transfer with old mechanism and solutions to reduce the implement cost.The main feature and innovation of this paper is:1) it reveals the problems of company A’s incentive model and analysis the causes of these problems;2) it outlines the incentive model frame with EVA performance-oriented annual salary system and virtual equity option;3) it provides the implement strategy of this new inventive model.This study not only provides Incentive model and implementation strategies for Henan A real estate company, but also is a good reference for middle and senior manages’ incentive and restraint mechanisms of other small and medium enterprise.