Research On The Negative Effects Of Eqity Incentive

In December31,2005the China Securities Regulatory Commission announced the "listing Corporation incentive management approach (Trial)", marking China’s listing Corporation in the implementation of equity incentive officially began operation. Equity incentive to managers by a certain proportion of the shares, to enjoy the company of value-added benefits, long-term operation more to care for the company. However, because of the market environment and the company itself, the implementation of equity incentive in China’s listing Corporation did not achieve the desired effect. As everyone knows "Gome equity dispute" event, Chen Xiaobian is the use of the related governance mechanism is not perfect, the equity incentive plan to become its draw private profi t means.This article mainly from GOME equity incentive authorization object range, exercise price, exercise conditions determined, releasing the opportunity and develop procedures and other aspects of analysis, see Gome launched the equity incentive to become managers gain method. From the comparative analysis to launch equity incentive point after two years of profit ability, debt paying ability, market share, the share price, basic earnings per share and the diluted earnings per share of the financial indicators and non-financial indicators, thus the incentive effect of how.The conclusions of this study means, to give full play to the positive effects of equity incentive, in addition to the reasonable design of equity incentive programs, should establish and improve the supervision mechanism, and the optimization of corporate governance structure and improve the occupationmanager market.