The Research About Equity Incentive Of Companies Listed GEM

With good growth potential, GEM companies shares in the secondary market good liquidity, and higher yields are listed on the GEM equity incentive company to carry out to create a good condition. Its good growth in favor of equity incentive to achieve targets, while in turn, can stimulate managers to achieve higher goals and aspirations. GEM listed companies with good liquidity and market acceptance can better reflect the company’s true value and performance, to better enable the stock price and the company’s performance converge. GEM is more concentrated ownership structure, with a good performance on the secondary market, with high liquidity, high-yield, high volatility and other characteristics, in addition to the GEM companies are mostly high-tech innovation and enterprise, with good growth potential, talent and technology have higher pursuit, so the use of equity incentives to improve corporate governance mechanisms to encourage employees to actively work to promote the company’s technology innovation, for the healthy development of the GEM has great significance.Because GEM listed companies, mostly private enterprises, inadequate corporate governance structure, ownership is highly concentrated, leading to the implementation of equity incentive the following problems: GEM Equity Incentive uneven regional distribution, owners and operators are not completely separated, equity incentive setup process incentive object exists in the uneven distribution of one-sided exercise conditions, waiting periods and shorter validity and executives get stock holdings after widespread problems and separation.Through in-depth analysis of the causes of these problems and to make recommendations accordingly countermeasures from the following aspects: to encourage Midwest GEM companies equity incentive perfect setting Remuneration Committee thereby reducing large shareholder control, reasonable arrangements for the equity incentive plan content, improve relevant laws and regulations.