Research Of Vesting Conditions Of China’s Real Estate Listed Company’s Equity Incentive

The executive incentive mechanism originated in the demand of socialpractice in the face. In the case of incomplete information, in economics andmanagement research important question is what the senior managers of theoptimal incentive mechanism. Long-term incentives in many countries of theworld gradually became the important part of executive compensationcombination, in more developed countries, long-term incentive percentage ishigher. Studies have shown that the implementation of the company’slong-term performance of the employee stock ownership plan is higher thanon the implementation of enterprise.Equity division reform in China from2005until now, with the rapiddevelopment of equity incentive in our country only after nine years of time,from the beginning of the "full flowering" to today’s gradually understandthat depending on the specific situation of listed companies, listed companiesin China in the equity incentive plan has become rational rather than justfollow trend. Although has entered the stage of rational development, ourcountry has its own special national conditions, and some of the existingtheoretical research is empirical, based on the experience of foreignenterprise’s equity incentive income, direct translation theory and evenabroad, so the equity incentive plan research in our country still has a longway to go. This paper use empirical proof the correlation of equity incentivesand the performance of listed companies, but with the Wanke in recent years, two different equity incentive plans to study to prove: the real estate industryin our country, restricted stock relative to the stock option is a moreappropriate incentives.Before the analysis of Wanke’s case for the equity incentive condition ofthe real estate market in China, it is concluded that the use of restricted stockincentive and stock option incentive of the company’s equity incentive plan,statistical content of the terms of the walk right, whether the last line of whatis right, if not the failure reason and so on. Which focus on the analysis of theequity incentive plan including the conditions of market and non-marketconditions, the non-market conditions basically is given priority to withreturn on net assets and net profit growth rate, use less of market conditions.On these lines is proposed in this paper some problems existing in the rightcondition, and puts forward corresponding measures.Although the2006performance is very good, but two years in2007and2008as affected by theglobal financial crisis, equity incentive plan didn’t succeed.2011equityincentive plan, Wanke again started to switch to the stock option incentivemode, and the exercise of equity incentive conditions while demanding, buthas successfully exercise twice, yet problems still exist in vesting conditions.This article carries on the analysis and points out on the problem.In2006, inthe reform of non-tradable shares just starts, Wanke take the lead in theimplementation of equity incentive plan, use less popular way of restrictedstock incentive.