The Analysis Of Equity Incentive Plan Design Features Of State-Owned Companies

Equity incentive management of the company as a long-term incentives, has an irreplaceable role in effectively reducing agency costs, motivate executives to work hard and improve company performance level and so on. However, the theory and practice of the West has shown the implementation of equity incentive there will be problems.2006introduced the "Listed Companies Equity Incentive Management Method (Trial)" and opened the prelude of equity incentives, more and more enterprises begin to implement equity incentive. Current domestic studies are mostly based on relationships of equity incentive and corporate performance test. Rarely visits equity incentive plan design from the perspective of effectiveness. If poorly designed, it will definitely affect the implementation of the results.Accordingly, the object of study is the incentive program features of state-owned holding company. Choose from more than400listed companies since2006. Through statistical analysis of a large sample and comparative analysis specific programs that state-owned enterprises Shengyi company and private Deren Electronic to study the effectiveness of incentive stock options. The results showed that the state-owned holding company of the following problems in the design of incentive programs:(1) incentive mode single, mostly using stock options and restricted stock, other modes rarely involved.(2) incentive target concentration. State-owned enterprises incentive target is more executives and less key technical personnel, mostly private enterprises rather average.(3) shorter validity period, state-owned enterprises is generally3-5years, the majority of private over5years.(4) exercise price is low, the average price of state-owned enterprise is lower than the private enterprise.(5) single assessment indicators, the basic choice ROE net profit growth and other financial indicators, few select non-financial indicators. These problems indicate the existence of state-owned holding company governance structure and internal control problems make equity incentives as a means for personal gain.The results of this study imply that if we want equity incentive is more effective, we must pay attention to and strengthen the importance of the incentive program design. And through the improvement of corporate governance structure, improve laws and regulations and external markets as well as other measures to improve design methods to optimize the development of state-owned holding company equity incentives. In these ways, we can make the effect of equity incentive programs more pronounced.